Overview
Today, 1 in 5 Kentuckians, and over 100 million Americans, struggle with medical debt. This has become the leading cause of bankruptcies in America, with 66% of all bankruptcies being directly linked to the high cost of health care, prescription drugs, surprise or erroneous billing, hidden fees, and losing jobs due to medical conditions. Even if medical debt doesn’t bankrupt a Kentuckian, medical debt can have a major impact on a person’s life: having just $500 of medical debt can result in a 20-60 point reduction in your credit score, which can impact a person’s ability to purchase a home, car, and more.
Healthcare is a basic human right and no Kentuckian should ever have to make the choice between their dollar and their life. This is why on September 15, 2026, Governor Andy Beshear signed Executive Order 2026-600, directing the Secretary of the Finance and Administration Cabinet to transfer $2.5 million dollars to Undue Medical Debt, a national nonprofit that purchases and abolishes medical debt, for the purpose of erasing $250 million in medical debt for an estimated 130,000 eligible Kentuckians.
Medical debt relief is automatic for eligible medical debt – there is no application or payment.
Within a week following September 15, 2026, letters will be going out to erase the first $100 million dollars in medical debt and provide relief for 46,000 Kentuckians. Relief is automatic – the letter is your notice that eligible debt has been canceled. Keep an eye out in your mailboxes for an envelope that looks like the following:
