$550 Million of Medical Debt Erased for Over 260,000 Californians — Undue Medical Debt

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$550 Million of Medical Debt Erased for Over 260,000 Californians

Transformative gift from Evan Spiegel and Miranda Kerr centers affordability crisis & empowers families to re-engage with healthcare

Santa Monica, CA, — June 25, 2026 – Undue Medical Debt today announced that a transformative gift from Evan Spiegel and Miranda Kerr has erased over $550 million in medical debt for over 261,000 Californians, providing relief to families across the state as healthcare costs and broader affordability challenges continue to weigh on households. This is Undue’s largest state-wide medical debt erasure in California to date.

Brooklyn, a former recipient of medical debt relief in Woodland, CA, shares, “In 2018, I was in a traumatic car accident during a medical crisis. The ambulance bill alone was over $4,600 — a number that haunted me for years while I was trying to rebuild my life, go back to school, and raise my daughter as a single mom. I never thought I’d get relief. When I opened the letter from Undue Medical Debt, I cried. Not just because the money was erased, but because someone out there believed I deserved a second chance. This isn’t just about debt — it’s about hope. Thank you for lifting this off my shoulders.”

“The scale of this gift to Californians is truly astonishing, unburdening over a quarter million families of over half a billion dollars of un-payable medical debt,” shares Undue Medical Debt president and CEO Allison Sesso. “In the U.S. 1 in 4 adults are in medical debt; it’s a growing crisis undermining healthcare access, economic wellbeing and mental health and we’re so grateful that Evan Spiegel and Miranda Kerr share our belief that no one should go bankrupt because of a cancer diagnosis and no family should have to choose between insulin and groceries.”

Allison continues, “As a nonprofit leveraging cutting edge, proprietary technology to buy and erase medical debt at scale, our model addresses one of the main barriers to accessing care, which impacts families from small rural towns to Silicon Valley. We so appreciate this incredible support to remove these debts of necessity for good.”

“When someone is sick or recovering, the focus should be on healing and caring for the people you love, not on bills that can follow a family for years,” said Evan Spiegel and Miranda Kerr. “At a time when so many Californians are already struggling with rising costs, medical debt can make it even harder for families to regain their footing. We’re grateful to support Undue Medical Debt’s work to help lift that burden, and we hope this relief gives families more peace of mind and more room to prioritize their health, their loved ones, and their future.”

See a video message from Evan and Miranda here.

Medical debt is the leading cause of bankruptcy, leads domestic concerns in 2026 (above the economy) and people with medical debt are three times more likely to struggle with issues like depression and anxiety.

Undue Medical Debt is a national nonprofit that has erased over $40 billion of burdensome medical debt in all 50 states to date. It acquires qualifying medical debt in bulk from providers like hospitals and physicians’ groups and also from collection agencies for pennies on the dollar and then it erases those debts out of the blue, sending Undue Medical Debt branded envelopes notifying recipients.

Top 10 California Counties Benefiting from Debt Relief through Evan and Miranda’s Gift:

CountyTotal Debt ReliefPeople Impacted
San Diego County$99,026,31340,369
Riverside County$69,485,21535,486
San Bernardino County$56,508,86532,034
San Joaquin County$45,353,56416,158
Los Angeles County$26,785,08517,466
Stanislaus County$26,518,70211,044
Monterey County$19,346,9675,697
San Francisco County$18,515,1596,451
Sonoma County$17,065,4277,104
Alameda County$16,521,8976,548

California families benefiting from debt relief can expect envelopes to start arriving mid-July. 

Debt relief cannot be requested and is source-based, meaning the nonprofit can only cancel debts it acquires from partners. Those who qualify are either: four times (400%) or below the federal poverty level (around $100k for a family of four) or have medical debt that is 5% or more of their annual income. Learn more: https://unduemedicaldebt.org/faq/

To support additional debt relief: https://unduemedicaldebt.org/donate/