Undue Medical Debt is a national 501(c)(3) charity, founded in 2014 and known as RIP Medical Debt until its April 2024 rebrand. Undue buys portfolios of past-due medical bills for pennies on the dollar and cancels them, and as of October 2026 it reports relieving roughly $50 billion in debt in total (its own count, not independently audited). The catch for readers searching for help: individuals cannot apply, request a specific bill, or pay to be included. The charity picks accounts from the portfolios that hospitals, physician groups, and governments make available.
The CoveredUSA guide below explains the 2026 income test, which bills are eligible, how to recognize a real letter, and what to do if no letter arrives. Adults under 65 with unpaid hospital bills usually have faster tools than waiting: hospital charity care, a line-by-line bill review with the CoveredUSA bill analyzer, and state protections. For credit effects, see medical debt and your credit report, and for bills already in collections, see what to do when a hospital bill goes to collections.
Coverage Breakdown
Direct answer: can Undue Medical Debt clear your bills?
It depends. You cannot apply to Undue Medical Debt. It buys past-due bills in bulk from participating providers and cancels them for people at or below 400% of the federal poverty level ($63,840 for one person in 2026) or with debt of 5% or more of household income. A letter in the mail is the only notice.
How Undue Medical Debt works: from provider portfolio to cancellation letter
Undue Medical Debt works in four steps, as described by Los Angeles County's public health department, one of its government partners in 2026. First, hospitals and other providers that opt in send bundled account data to Undue. Second, Undue screens the accounts for financial hardship. Third, the provider sells or donates the qualifying accounts, and Undue pays pennies on the dollar of face value. Fourth, Undue mails letters telling each person the listed debt is canceled. Donations and government funding pay for the purchases.
Undue Medical Debt started in 2014 as RIP Medical Debt and changed its name in April 2024. Historically it bought accounts from commercial debt buyers on the secondary market, and it now also obtains accounts directly from health systems and physician groups. Governments including Los Angeles County have funded purchases: the county program reported more than $451 million erased for over 220,000 residents as of October 2026, and a Michigan state round announced October 14, 2026 erased over $21 million for nearly 10,000 residents.
Who qualifies in 2026: the 400% FPL or 5% of income test
Undue Medical Debt partners screen for either of two conditions in 2026: household income at or below 400% of the federal poverty level, or medical debt equal to 5% or more of household income. Los Angeles County's program also requires residency in the county and eligible debt, meaning a bill from a participating provider that is past due and not on a payment plan. Undue verifies income through a soft credit inquiry and data that providers share, so you never submit pay stubs. The table shows the 2026 income line.
The 5% test can apply at incomes above the 400% line. A household earning $80,000 in 2026 would meet the debt test with $4,000 or more in medical bills. Each partner program sets its own rules, and local programs add residency requirements, so the exact test for your bill depends on who bought it.
What Undue can and cannot clear for your medical bills
Undue Medical Debt targets old, unpaid accounts where billing and collections are finished. In the Los Angeles County program, dates of service were generally 18 months to 7 or more years ago in 2026. A recent bill you are still negotiating, a balance on an active payment plan, or a bill from a provider that never joined a portfolio sale will not be touched. Undue also cannot choose to help one person: Los Angeles County confirms in 2026 that its program cannot relieve debt by individual request.
Relief covers only the debts named in the letter. Other bills stay due, and cancellation does not lower what you owe a different provider. Because Undue buys at a deep discount, the charity cancels far more face value than it spends, which is why a typical letter lists balances from several providers at once.
How you find out, how to spot a scam, and whether you owe taxes
People whose debt is relieved receive a letter by mail from Undue Medical Debt, sometimes co-signed by the sponsoring county or state, in an Undue-branded envelope. Los Angeles County's public health department warns that a text, phone call, or email claiming to offer relief is a scam, and that the program never asks for information or payment in exchange for relief. Anyone who asks you to pay to be included is not Undue. If you lose a real letter, contact Undue to request a replacement and confirm your name, address, or date of birth.
On taxes, Undue and Los Angeles County state in 2026 that the relief is a gift from a detached and disinterested third party, so it does not count as income and Undue does not file Form 1099-C with the IRS. That position comes from the charity and its government partners, not from IRS guidance we could verify, so ask a tax preparer if you have a large canceled balance. The eligibility check uses a soft credit inquiry, which appears on your credit report but does not lower your score.
Alternatives if Undue Medical Debt does not clear your bills
Because Undue Medical Debt cannot be requested, adults under 65 who owe hospital bills should work the options they control. The five below are listed in the order that usually saves the most money, and each one can run at the same time as the others.
- Hospital charity care: nonprofit hospitals must have a written financial assistance policy under IRS Section 501(r) and must give at least 240 days from the first post-discharge bill to apply. Many hospitals discount care for incomes up to 400% FPL in 2026. Ask the billing office for the application and see our guide to hospital charity care under 501(r).
- Itemized bill review: request an itemized bill and your insurer's explanation of benefits, then check for duplicate charges, services you did not receive, and out-of-network surprises. The CoveredUSA medical bill analyzer flags these line by line.
- State and local medical debt laws and programs: some states cap interest, limit collections, or fund their own Undue-style cancellations, such as the Los Angeles County and Michigan rounds in 2026. Check your state attorney general or health department page for current rules.
- Interest-free payment plan: if a balance is valid, ask the hospital for a zero-interest plan in writing before the account moves to collections, and keep every payment record.
- Debt collector rights: if a collector contacts you, request written validation of the debt and file a complaint at consumerfinance.gov if the collector breaks federal rules. Avoid for-profit debt settlement companies that charge fees for work you can do free.
Prevent the next bill: coverage options for adults under 65 (2026 to 2027)
Medicaid covers adults under 138% of the federal poverty level in expansion states, which is $22,025 for one person in 2026, and applications are accepted year-round (work-requirement rules for expansion adults take effect as early as January 2027, depending on your state). Adults above that line can compare ACA-compliant Marketplace plans, which cover essential health benefits and cannot deny you for a preexisting condition. The 400% FPL cap on premium tax credits is back: for 2026 coverage it is $62,600 for one person, and for 2027 coverage, which you can pick starting November 1, 2026, it is $63,840. Check HealthCare.gov for current deadlines.
Adults under 65 who receive Social Security Disability Insurance qualify for Medicare after a 24-month wait. Medicare Part A and Part B under Original Medicare still leave cost-sharing, and Medicare Advantage or Medigap can reduce it. Compare coverage before an expensive stay, because a plan with a lower out-of-pocket maximum is the best protection against a bill that later needs relief.
Frequently Asked Questions
Can I apply to Undue Medical Debt to erase my bills?
No. Undue Medical Debt has no application and cannot relieve debt by individual request. It buys bundled accounts from participating hospitals, physician groups, and government-funded programs, then mails letters to people whose debts were canceled. If you want help with a specific bill, ask the hospital about financial assistance and review the bill line by line with the CoveredUSA bill analyzer.
Is Undue Medical Debt the same as RIP Medical Debt?
Yes. RIP Medical Debt, founded in 2014, renamed itself Undue Medical Debt in April 2024. It is the same 501(c)(3) charity with the same model: buying past-due medical debt at a steep discount and canceling it. Old letters, press coverage, and websites may still use the RIP Medical Debt name, so a RIP letter received earlier is not a sign of fraud.
Who qualifies for Undue Medical Debt relief in 2026?
Partner programs screen for household income at or below 400% of the federal poverty level ($63,840 for one person and $132,000 for four in 2026) or medical debt of 5% or more of household income. The bill must also come from a participating provider, be past due, and not be on a payment plan. Local programs, such as Los Angeles County's, add residency rules.
How do I know a letter from Undue Medical Debt is real?
A real notice arrives by postal mail in an Undue-branded envelope and lists the debts canceled. Los Angeles County warns that texts, calls, and emails offering relief are scams, and that no real program asks for payment or personal information in exchange for relief. If you doubt a letter, contact Undue directly using the contact details on its official website, not the letter's sender.
Do I owe taxes on medical debt Undue erases?
Undue and Los Angeles County say no: they describe the relief as a gift from a detached and disinterested third party, and Undue does not file Form 1099-C with the IRS. That position comes from the charity and its partners, not from IRS guidance we could verify in 2026, so check with a tax preparer if the canceled balance is large.
What can I do if I never get a letter but owe a hospital bill?
Most people with medical bills never receive a letter, because only accounts from participating providers that meet the criteria are bought. Ask the hospital billing office for its financial assistance application (nonprofit hospitals must allow at least 240 days from the first bill), request an itemized bill, and compare it with your explanation of benefits using the CoveredUSA bill analyzer.
Does Undue Medical Debt relief change my credit report?
The soft inquiry Undue uses to check eligibility appears on your credit report but does not lower your credit score. How quickly a canceled account is updated depends on the collector and the credit bureaus, and credit reporting rules for medical debt have been changing. Our guide to medical debt and your credit report explains the current rules in detail.
Should I use a debt relief company instead?
Be cautious. For-profit debt settlement companies often charge fees for steps you can take free, such as asking for financial assistance, disputing errors, or negotiating a payment plan. Undue Medical Debt never charges recipients. Start with the hospital's financial assistance office and the CFPB's debt collection resources at consumerfinance.gov before paying anyone.
