More than 261,000 Californians will see their medical debt erased, thanks to a multimillion-dollar donation from Evan Spiegel, CEO of Snap Inc., and his wife, supermodel Miranda Kerr.
The couple’s contribution to the nonprofit Undue Medical Debt has resulted in the forgiveness of over $550 million in medical bills. This marks the first time Undue has conducted a statewide debt erasure in California, according to vice president Daniel Lempert.
Undue Medical Debt purchases medical debt in bulk from hospitals and other groups at a fraction of the original cost and then forgives it. To qualify for relief, individuals must earn at or below 400% of the federal poverty level or have medical debt exceeding 5% of their annual income. The organization does not accept applications for relief, as it acquires bundled debt for thousands of people at once.
San Diego County residents will receive the largest portion of relief, with approximately $99 million benefiting 40,369 individuals. Los Angeles County follows with $26.7 million in relief for 17,466 people, as reported by the Los Angeles Times.
The donation highlights the growing trend of philanthropists addressing medical debt, which affects one in four U.S. adults. Undue Medical Debt President and CEO Allison Sesso emphasized the importance of this effort, stating, “No one should go bankrupt because of a cancer diagnosis, and no family should have to choose between insulin and groceries.”
Starting in mid-July, Californians benefiting from the debt relief will receive letters informing them of the erasure. Spiegel and Kerr’s donation is part of a broader philanthropic effort that includes past contributions to student loan forgiveness and wildfire recovery initiatives. As Spiegel noted, “An unexpected medical bill can create financial stress that lasts for years.”
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