This presentation will mark the final scheduled update in a year-long process that began in January. If adopted, this would be Lexington's new framework for determining how and if to expand the Urban Service Area
In a press conference on Tuesday, November 18, the Lexington-Fayette Urban County Government announced it completed its first round of medical debt forgiveness in partnership with the nonprofit Undue Medical Debt.
This round of forgiveness abolished more than $12.6 million of medical debt for 6,484 Fayette County residents.
Earlier this year, LFUCG signed a $1 million, three-year contract with Undue Medical Debt with the goal of forgiving $90 million in medical debt for Fayette County residents.
LFUCG funding was allocated out of the city’s Fund Balance, which is money leftover at the end of the government’s fiscal year. Vice Mayor Dan Wu entered the item into Fund Balance negotiations, and has led the initiative since it was approved.
To be eligible, recipients must either:
Live at or under 400% of the federal poverty line– for a single person-household in Kentucky, that’s $62,600. For a family of three, the cap is just above $100,000.
Have medical debt totalling at least 5% of their annual household income.
✋
I don’t live in Lexington right now, but I have medical debt from a hospital there. Does that count? No, only current Lexington-Fayette County residents are eligible for debt relief under this contract. Most municipalities that have worked with Undue Medical Debt used American Rescue Plan Act funds. Lexington is one of the first to use its own city funding for the debt relief, since it spent its ARPA funds in other ways. That means the funds can only be used on residents right now.
What does this mean for you?
After a certain amount of time, debt typically enters ‘collections,’ and it is bought up by debt collectors. There’s a low likelihood that someone with medical debt will have the money to pay it back, so hospitals sell the debt to these collectors for a fraction of its worth.
Undue Medical Debt utilizes this same system. The nonprofit creates contracts with city and county governments, using those funds and donations to buy up the medical debt. Instead of chasing the debtor down, Undue Medical Debt then wipes the amount of money owed.
Beginning the week of November 24, if you’re selected for this first round of debt wipes, you will get an official letter in the mail from Undue Medical Debt and LFUCG.
All the debt wiped in this first round was from one hospital, which has chosen to stay anonymous. So, if you owe from multiple hospitals, make sure to keep track of what money is owed where.
✋
I got this letter in the mail. What else do I need to do now?Nothing. There isn’t a confirmation or application process– you no longer owe the amount listed on the letter. Keep the document somewhere safe in case a hospital or collector believes you still owe that amount.
🫵
How can you get involved? There is NOT a way to apply for this medical debt relief, and any applications will be ignored. However, you can reach out to your councilmember to let them know your thoughts.
Anabel Peterman is CivicLex and Next City's Rural-Urban Report Fellow. She covers stories that explore the complexities of rural-urban dynamics playing out across the Central Kentucky region.
This presentation will mark the final scheduled update in a year-long process that began in January. If adopted, this would be Lexington's new framework for determining how and if to expand the Urban Service Area
While this ruling blocks the proposed eight-story, 322-unit apartment complex, the developer could still demolish the existing buildings and construct a new four-story, 75-foot structure under the site’s current R-4 zoning without any additional public input.
