Residents in Florence, Union, Burlington and Hebron who carry medical debt could see some or all of it erased under a new statewide program Gov. Andy Beshear launched Tuesday, Sept. 15.
Beshear signed an executive order creating the Team Kentucky Medical Debt Relief Program, which is expected to wipe out an estimated $250 million in medical debt for more than 130,000 Kentucky residents. The program covers any qualifying Kentuckian, and no application is required.
The first 46,000 people will have more than $100 million in debt eliminated. Notification letters begin arriving the week of Monday, Sept. 21, according to Fox 56.
Who qualifies
The program covers any Kentucky resident who either owes at least 5% of annual household income in medical bills or has household income at or below 400% of the federal poverty level. That threshold is roughly $100,000 a year for a family of three, according to Spectrum News 1.
Residents do not apply or request inclusion. Undue Medical Debt, a national nonprofit, identifies qualifying debt through portfolios it buys from hospitals and collection agencies. Recipients get an official letter listing which debts were erased and from which creditors.
The governor's office recommends keeping the letter as proof, according to WSAZ.
How the money works
The executive order directs $2.5 million in state funds to Undue Medical Debt. The state estimates every $1 spent erases about $100 in debt, The Lane Report reported.
The $2.5 million came from half of a $5 million housing allocation the General Assembly set aside from the rainy day fund, Beshear told reporters, according to Louisville Public Media.
Undue Medical Debt has eliminated more than $49 billion in medical debt nationally. The nonprofit previously partnered with Lexington in 2024; as of February 2026, it had waived more than $18 million for almost 10,000 Lexington residents.
'A pebble on that giant mountain'
Melissa Henry, a Kentucky resident who accumulated thousands of dollars in medical debt from surgeries and appointments to manage chronic back pain, spoke at the Sept. 15 announcement in Frankfort.
Henry said she had to choose between keeping the lights on and feeding her family or paying down her debt. Undue Medical Debt erased the debt from her first emergency room visit. She described that relief as "a pebble on that giant mountain" of debt she has gathered, Louisville Public Media reported.
What's next
Additional rounds of debt relief will follow as Undue Medical Debt acquires more qualifying portfolios from providers and collection agencies. No dates for later rounds have been announced.
Residents can visit MedicalDebtRelief.ky.gov for program details.
Upcoming community events
- Florence Royal Prom: Saturday, Sept. 19, celebrating guests with disabilities.
- Boone County Library America's 250th series: Free events at Boone County Public Library branches. Check the library's website for dates and locations.
