By Cato Hernández for LAist
Originally published on June 25, 2026
Topline:
Over 261,000 Californians will have medical debt erased, according to nonprofit Undue Medical Debt. That totals more than $550 million in medical bills, thanks to a gift from Snap Inc. CEO Evan Spiegel and Miranda Kerr.
How does this work? Undue has paid off debts in California on a local level for a while now, but this is the first time it’s doing an erasure here statewide, according to vice president Daniel Lempert. You can’t apply for this relief. Instead, the nonprofit buys and pays off the debts for pennies on the dollar from participating groups and hospitals. Undue doesn’t disclose who those are unless the organization wants it known — and in this case, that is staying private.
Who’s benefiting? To qualify, you must either be at or below 400% of the federal poverty level (that caps out at $132,000 for a family of four), or have medical debt that is 5% or more of your annual income. About half of the relief is going to people in Southern California:
- San Diego County: $99 million (40,369 people)
- Riverside County: $69.5 million (35,486 people)
- San Bernardino County: $56.5 million (32,034 people)
- Los Angeles County: $26.8 million (17,466 people)
How will I know if I’m selected? If your debt is picked, you’ll get a letter in the mail from Undue Medical Debt. Those will start arriving in mid-July.
Evan Spiegel is a financial supporter of LAist and The LA Local. Like other funders, he has no influence on our coverage.
