Team Kentucky continues progress toward $250 million in medical debt relief
FRANKFORT, Ky. (Oct. 29, 2026) – Today, Gov. Andy Beshear announced that a total of $153 million in medical debt has been erased for 67,000 Kentuckians as his administration makes progress toward the goal of $250 million in relief through the Team Kentucky Medical Debt Relief Program. Established by the Governor through an executive order in September, the program is set to relieve medical debt for 130,000 eligible individuals across the commonwealth.
“Providing relief from medical debt can be life-changing for hardworking Kentuckians, and we’ve seen that firsthand through positive messages from those who have benefited from this program,” said Gov. Beshear. “From cancer treatment to giving birth, the stories showcase that medical debt is not a choice, yet it can burden a family for years and keep them from milestones such as homeownership. I am proud of the progress we’re making to provide relief to 130,000 of our people.”
Following the Governor’s initial announcement of the program in September, the first 46,000 qualifying Kentuckians had more than $100 million in medical debt erased. As of today, an additional $50 million dollars has been cancelled for another 22,000 Kentuckians.
Through the executive order, Gov. Beshear directed $2.5 million to Undue Medical Debt, a national nonprofit that has erased more than $49 billion in debt nationwide. The nonprofit acquires medical debt from participating hospitals and collection agencies, relieving debt for a fraction of the cost. For Kentucky, the breakdown equals $100 erased for every $1 spent.
“At a time when an estimated 100 million people in this country are burdened by medical debt, Kentucky is exemplifying how state leadership can show up for its constituents. I’m grateful to Gov. Beshear and Team Kentucky for their partnership,” said Undue Medical Debt president and CEO Allison Sesso. “Through this second round, more than 22,000 Kentuckians will soon learn that nearly $50.6 million in medical debt is gone. No one chooses to get sick, be in an accident or have a chronic condition, and no one should lose their financial stability or their shot at owning a home due to these debts of necessity. I hope this relief brings financial and emotional peace of mind and encourages people to re-engage with the healthcare system without fear of the cost.”
There is no application process for the Team Kentucky Medical Debt Relief Program, and debt relief cannot be requested. Eligible Kentuckians will receive an official medical debt relief letter from Team Kentucky and Undue Medical Debt. The letter will notify recipients of what debts have been erased and from which creditors. No further action is required of Kentuckians who receive a letter; however, it is recommended that the letter is kept for proof of debt erasure.
Official debt relief numbers for the first round of eligible Kentuckians have already been distributed. The second round of letters are expected to be mailed around the week of Nov. 9.
To qualify for the program, one must be a resident of Kentucky who owes at least 5% of their annual income for outstanding medical bills or earns at or below 400% of the federal poverty level, which is around $100,000 for a family of three.
For Additional Information
Relieving medical debt provides a fresh start for hardworking families who have lost their financial stability through no fault of their own. For more information on the Team Kentucky Medical Debt Relief Program, visit MedicalDebtRelief.ky.gov.
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