Lexington's partnership with the national nonprofit Undue Medical Debt began in 2024, and since then two rounds of notices have been sent to residents selected to have medical debt abolished.
"The first wave was something over $12 million and the second wave was a little bit over $5 million, together totaling over $18 million of debt wiped," Anabel Peterman, an Equitable Cities Reporting Fellow with CivicLex and Next City, reported in March.
Undue Medical Debt purchases medical debt from hospitals and debt collectors at a discount and pays off that debt for individuals it identifies as experiencing hardship. The city joined with the group, allotting $1 million in city funds with the goal of wiping out $90 million through the program.
As Peterman explained to WUKY earlier this year, recipients are notified through the mail without any prior knowledge they're being considered.
"There is no application process, so you can't apply and if you haven't applied, don't worry. You're not supposed to," she said. "To qualify to have their debt erased, one of two things needs to be true: Either you are in a household that makes a total of 400% or lower of the federal poverty line... or your medical debt total needs to be at least 5% of your household income."
The latest round of notices will be delivered to 2,185 Lexington residents.