Lexington, KY – Nearly 3,200 residents of Lexington will have portions of their medical debt eliminated, city officials announced Wednesday, marking the second phase of a program aimed at alleviating the financial burden of healthcare costs. The latest round of relief, totaling $5,669,531.68, builds upon an initial wave in November 2025 that erased $12,641,416.24 in medical debt for 6,484 residents, bringing the total debt abolished to over $18.3 million for nearly 10,000 people, according to a press release.
The initiative is a partnership between the city and Undue Medical Debt, a national nonprofit organization that purchases and forgives medical debt. Lexington’s Urban County Council unanimously approved $1 million in funding for the program, which targets residents facing significant financial hardship due to medical bills. Residents will be notified directly by mail by Undue Medical Debt beginning this week regarding the elimination of their debt.
To qualify for debt relief, residents must currently live in Lexington-Fayette County and meet one of two criteria: have an income up to 400% of the Federal Poverty Guidelines – just over $100,000 for a family of three – or have medical debt that represents 5% or more of their annual income. City officials emphasized that the debt relief is “source-based,” meaning Undue Medical Debt can only eliminate debts it acquires from hospitals and debt collectors that partner with the organization. Individuals cannot directly request debt relief.
The program’s impact extends beyond immediate financial relief. According to WKYT, the partnership with Lexington has already relieved a total of more than $18 million in medical debt. City officials have previously indicated the initiative could potentially abolish up to $90 million in medical debt for Lexington-Fayette County residents. The city’s investment in the program reflects a growing awareness of the crippling effect medical debt has on individuals and families, and a proactive approach to addressing the issue.
The first wave of relief, announced last November, assisted over 6,400 Lexington residents. The current eligibility criteria remain consistent with the initial phase of the program. Further information about the medical debt relief initiative is available on the city’s website at lexingtonky.gov/medicaldebtrelief.
