Gov. Beshear To Relieve $250 Million in Medical Debt for More Than 130,000 Kentuckians

Governor signs executive order providing funding to Undue Medical Debt

FRANKFORT, Ky. (Sept. 15, 2026) – Today, Gov. Andy Beshear signed an executive order establishing the Team Kentucky Medical Debt Relief Program, which will provide relief to more than 130,000 Kentuckians from $250 million in medical debt.

“Medical debt isn’t a choice – it’s what people are faced with after a serious accident, cancer diagnosis and more. Relieving this debt is the right thing to do to help Kentuckians who are overwhelmed by these extreme costs, which can cripple families for years, if not a lifetime,” said Gov. Beshear. “That’s especially true when medical debt results in bad credit, which can prevent families from securing the American Dream of owning a home. Unpredictable challenges shouldn’t be a barrier for a better future, and today we’re taking steps to help make sure that isn’t the case.”

Through his executive order, Gov. Beshear directed $2.5 million to Undue Medical Debt, a national nonprofit that has erased more than $49 billion in debt nationwide. The nonprofit acquires medical debt from participating hospitals and collection agencies, relieving debt for a fraction of the cost. For Kentucky, the breakdown equals $100 erased for every $1 spent.

“We’re proud to partner with Gov. Beshear and Team Kentucky to lift the financial and emotional burden of medical debt for families across the commonwealth,” said Undue Medical Debt Vice President of Government Initiatives Courtney Werpy Story. “No one chooses to get sick, get injured or face financial hardship simply because they needed healthcare. Thanks to this partnership, more than $103 million in medical debt has already been erased for over 46,000 Kentuckians, with letters arriving in mailboxes starting next week – one less bill to carry and one less source of stress. We hope this relief encourages Kentuckians to re-engage with the healthcare system, and we’re grateful for Gov. Beshear’s leadership as we continue this work.”

There is no application process for the Team Kentucky Medical Debt Relief Program, and debt relief cannot be requested. Eligible Kentuckians will receive an official medical debt relief letter from Team Kentucky and Undue Medical Debt. The letter will notify recipients of what debts have been erased and from which creditors. No further action is required of Kentuckians who receive a letter; however, it is recommended that the letter is kept for proof of debt erasure.

Beginning this week, the first 46,000 qualified Kentuckians will have up to $100 million in medical debt erased. Official debt relief letters will go out in the mail beginning next week to notify individuals included that some or all of their medical debt has been erased.

Joining the Governor for the announcement was Melissa Henry, a Kentuckian whose severe, chronic back pain led to multiple surgeries and appointments that loaded up thousands of dollars in medical debt. Henry shared how having a portion of that debt erased helped her move forward and find hope.

“No one chooses to get sick, and there is no shopping around to compare prices. Like thousands of other Kentuckians, I was opted into medical debt by illness and accident. Trying to focus on getting better, I had to choose between keeping the lights on and food in the fridge or trying to pay down the debt. It was a painful distraction keeping me from focusing on recovery. That debt followed me and affected my credit for years. It made it harder to buy a car, qualify for a mortgage; every loan I got had a higher interest rate. I delayed going back to the doctor even when I should have,” Henry said. “Undue Medical Debt erasing my debt gave me hope. Hope that there are people and companies that care more about human lives than money. Hope that someday no one will have to make an impossible choice because they can’t afford medical care.”

To qualify for the program, one must be a resident of Kentucky who owes at least 5% of their annual income for outstanding medical bills or earns at or below 400% of the federal poverty level, which is around $100,000 for a family of three.

For Additional Information
Relieving medical debt provides a fresh start for hardworking families who have lost their financial stability through no fault of their own. For more information on the Team Kentucky Medical Debt Relief Program, visit MedicalDebtRelief.ky.gov.