Snap co-founder Evan Spiegel and his wife Miranda Kerr donated millions to Undue Medical Debt, enabling the nonprofit to erase $550 million in unpaid medical bills for over 261,000 Californians. The initiative, announced this week, will start notifying eligible recipients in mid-July, providing relief to families burdened by medical debt across the state, according to fortune.com.
The donation quietly made this spring triggered the debt relief effort, targeting Californians earning at or below 400% of the federal poverty level or those whose medical debt exceeds 5% of their annual income. San Diego County will receive the largest share, with about $99 million wiped for roughly 40,000 residents, followed by Los Angeles County with $26.7 million for 17,500 people. Allison Sesso, president and CEO of Undue Medical Debt, described the gift as astonishing in scale, unburdening a significant number of families.
This philanthropic move places Spiegel alongside MacKenzie Scott as a major individual donor in the medical debt relief space, a growing trend addressing the intersection of distressed debt markets and healthcare challenges in the U.S. With one in four American adults carrying medical debt, such large-scale debt forgiveness efforts highlight the increasing attention on healthcare affordability and financial hardship caused by medical bills.
Starting mid-July, Californians eligible for relief will receive letters informing them of the debt erasure. The program’s focus on income thresholds and debt-to-income ratios ensures targeted assistance. San Diego County’s $99 million share represents the largest regional impact, reflecting local needs and the scale of the donation.