Lexington, KY Relieves Over $18 Million in Medical Debt for Residents
Lexington, Kentucky, is providing significant financial relief to its residents through a partnership with the national nonprofit Undue Medical Debt. As of February 26, 2026, nearly 10,000 Lexington residents have had a combined total of $18,310,947.92 in medical debt abolished. A second wave of relief, announced on Wednesday, will eliminate or reduce the medical debt of approximately 3,200 additional residents.
Initiative Details
The program, funded by a $1 million allocation from the Lexington-Fayette Urban County Council, leverages the purchasing power of Undue Medical Debt. This nonprofit acquires medical debt from healthcare providers and debt collectors, then forgives it, rather than pursuing collection. The initial round of debt relief was announced in November 2025, abolishing $12,641,416.24 in medical debt for 6,484 residents [LEX 18]. The latest wave totals $5,669,531.68 in relieved debt [WKYT].
Eligibility Criteria
To qualify for medical debt relief, Lexington-Fayette County residents must meet specific criteria:
- Current residency in Lexington-Fayette County
- Income up to 400% of the Federal Poverty Guidelines (just over $100,000 for a family of three)
- Medical debt equal to 5% or more of annual income
It’s important to note that debt relief is “source-based,” meaning Undue Medical Debt can only eliminate debts it acquires from participating healthcare providers or debt collectors [LEX 18]. Residents cannot directly request debt relief.
How Residents Will Be Notified
Residents whose medical debt has been eliminated will be notified directly by mail from Undue Medical Debt, beginning this week [Yahoo]. No action is required from residents to receive the relief.
Future Potential
City officials estimate the initiative could potentially abolish up to $90 million in medical debt for Lexington-Fayette County residents [WKYT].
For more information, visit lexingtonky.gov/medicaldebtrelief.