Key Takeaways:
A gift from Snap CEO Evan Spiegel and Miranda Kerr erased more than $550 million in medical debt for over 261,000 Californians, Undue Medical Debt announced June 25.
The nonprofit buys debt in bulk for pennies on the dollar, so roughly every $10 donated cancels about $1,000 in medical debt.
Recipients do not apply and cannot be billed back, with notification letters reaching families across 10 top counties starting in mid-July.
Undue Medical Debt announced on June 25 that a gift from Snap chief executive Evan Spiegel and model and KORA Organics founder Miranda Kerr has erased more than $550 million in medical debt for over 261,000 people across California. Relief letters start arriving in mid-July.
The nonprofit buys medical debt in bulk from hospitals, physician groups, and collection agencies for pennies on the dollar, then cancels it. Roughly every $10 donated wipes out about $1,000 in debt, which is how a single gift stretches to half a billion dollars. Undue Medical Debt says it has erased more than $40 billion for over 27 million families across all 50 states since 2014.
Recipients cannot request the relief and cannot be billed back, because the nonprofit can only cancel debt it acquires. People qualify when they earn up to four times the federal poverty level, around $100,000 for a family of four, or carry medical debt worth 5% or more of their income. San Diego County alone accounts for about $99 million in relief for roughly 40,369 people.
Medical debt is the leading cause of bankruptcy in the United States and, in 2026, the issue Americans name as their top domestic worry, ahead of the economy. About 1 in 4 adults carry it. The gift lands as that pressure builds, with enhanced Affordable Care Act subsidies set to expire.
"The scale of this gift to Californians is truly astonishing"
The model works because the dollars are traceable from the donation to the canceled balance, a directness most giving lacks. That gap between dollars pledged and dollars that reach people is the one WYDE has followed in coverage of record charitable giving topping $617 billion and new charitable deduction floors that could cut donations by $81 billion over a decade. The most notable part here is how little of it is left to chance.
People Also Ask
How does Undue Medical Debt erase medical debt?
It buys unpaid medical bills in bulk from providers and collection agencies for pennies on the dollar, then cancels them, so about every $10 donated clears roughly $1,000 in debt.
Who qualifies for the Evan Spiegel and Miranda Kerr medical debt relief?
Californians earning up to four times the federal poverty level, about $100,000 for a family of four, or whose medical debt equals 5% or more of their income, with no application required.
When will Californians receive medical debt relief letters?
Undue Medical Debt says branded notification envelopes will begin arriving in mid-July 2026, led by San Diego, Riverside, and San Bernardino counties.
How much medical debt do Americans hold?
Roughly 1 in 4 US adults carry medical debt, which remains the leading cause of personal bankruptcy and, in 2026, the top domestic concern in Gallup polling.
Sources: Undue Medical Debt (Business Wire), Fortune