LEXINGTON, Ky. (LEX 18) — Nearly 3,200 Lexington residents will soon receive letters notifying them that all or part of their outstanding medical debt has been eliminated, city officials announced Wednesday.
City officials report that Undue Medical Debt, a national nonprofit that works to purchase and relieve burdensome medical debt, has acquired and eliminated $5,669,531.68 in qualifying medical debt in this second round of relief.
The latest wave builds on the first round announced in November 2025, which abolished $12,641,416.24 in medical debt for 6,484 residents. Combined, the two rounds have eliminated a total of $18,310,947.92 in medical debt for nearly 10,000 Lexington residents, according to city officials.
The Urban County Council unanimously approved $1 million in funding for the initiative.
City officials say that residents whose debt has been abolished will be notified directly by mail from Undue Medical Debt beginning this week.
To be eligible for relief, residents must meet the following criteria, according to city officials:
- Current Lexington-Fayette County residency, and
- Income up to 400% of the Federal Poverty Guidelines — just over $100,000 for a family of 3 — or
- Medical debt equal to 5% or more of annual income
Medical debt relief is source-based, meaning Undue Medical Debt can only eliminate qualifying medical debts it is able to acquire from partner providers, such as hospitals or debt collectors. City officials say medical debt relief cannot be requested by individuals.
For more information, visit lexingtonky.gov/medicaldebtrelief.
