Second Wave of Medical Debt Relief Announced for Lexington Residents  — Undue Medical Debt

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Second Wave of Medical Debt Relief Announced for Lexington Residents 

Lexington, KY – February 25, 2026 – Nearly 3,200 Lexington residents will soon receive letters notifying them that all or part of their outstanding medical debt has been abolished. Undue Medical Debta national nonprofit that works to purchase and relieve burdensome medical debt, has acquired and eliminated $5,669,531.68 in qualifying medical debt.

This second wave of relief builds on the first round announced in November 2025, which abolished $12,641,416.24 in medical debt for 6,484 residents.

Since the Urban County Council unanimously approved $1 million in funding for this initiative, a total of $18,310,947.92 in medical debt has now been eliminated for nearly 10,000 Lexington residents.

Residents whose debt has been abolished will be notified directly by mail from Undue Medical Debt beginning this week.

Who Qualifies:

Current Lexington-Fayette County residency, and 

  • Income up to 400% of the Federal Poverty Guidelines (just over $100,000 for a family of three), – 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, like hospitals or debt collectors. Medical debt relief cannot be requested by individuals. To learn more: lexingtonky.gov/medicaldebtrelief.