Medical Debt Elimination

Medical Debt Elimination Initiative in Partnership with Undue Medical Debt

In May 2023 the City of New Orleans entered into an agreement with Undue Medical Debt to provide $1.3 million in American Rescue Plan Act (ARPA) funding for the purpose of partnering with healthcare providers to acquire qualifying debt and erase it. Undue Medical Debt leverages these pandemic recovery funds as needed when collaborating with providers.

The New Orleans Health Department manages the initiative, which aims to erase the existing medical debt of eligible New Orleans residents experiencing financial hardship. The medical debt elimination program was unanimously approved by the New Orleans City Council in December 2022.

Residents who have debt cancelled through this initiative will receive a letter directly from the initiative. A sample letter is available for reference.

Medical Debt Cancelled Through the New Orleans Medical Debt Elimination Initiative
	Acadian Ambulance	Ochsner Health System	LCMC Health System	Secondary Medical Debt Holders
Number of New Orleans residents impacted	3,011	65,737	6,861	1^st round - 5,858 2^nd round – 5,147
Amount of debt cancelled	$3.4 million	$58.9 million	$8.5 million	1^st round - $6.8 million 2^nd round – 7.5 million
Letters mailed to residents	January 2024	July 2024	January 2025	1^st round - July 2024 2^nd round - Jan 2025