Snapchat CEO Evan Spiegel and his wife, model and entrepreneur Miranda Kerr, have backed one of California’s biggest medical debt relief efforts. Their donation will help erase more than $550 million in unpaid medical bills for over 261,000 residents. The initiative was carried out through the non-profit organisation Undue Medical Debt. The charity buys qualifying medical debt from healthcare providers and debt collectors before cancelling it. The relief is expected to help low-income families and others struggling with healthcare costs. Recipients do not need to apply or repay the cancelled debt. The donation also highlights the growing role of philanthropy in tackling medical debt in the United States.
How Evan Spiegel and Miranda Kerr’s $550 million medical debt donation works
The debt relief was made possible through Undue Medical Debt, formerly known as RIP Medical Debt. Instead of paying the full value of unpaid medical bills, the organisation buys qualifying debt portfolios on the secondary market at heavily discounted prices. Because medical debt is often sold for only a small fraction of its original value, donations can erase debts worth hundreds of millions of dollars. According to the organisation, every dollar donated can abolish about $100 in medical debt, although the exact amount depends on the debt portfolio.Residents do not need to apply for assistance. Instead, Undue Medical Debt identifies eligible accounts using financial criteria. In general, debt may qualify if a household earns no more than four times the federal poverty level or if medical debt equals at least 5 per cent of annual household income. Eligible recipients are informed directly after their debt has been cancelled. The forgiven debt also does not create a tax liability.
Why medical debt remains a major issue
Medical debt affects millions of Americans, including many people with health insurance. High deductibles, co-payments, emergency treatment and out-of-network charges often leave families with bills they cannot afford. Financial experts say medical debt can damage credit scores, delay healthcare and create long-term financial hardship. Organisations such as Undue Medical Debt work to reduce this burden while also advocating reforms to prevent medical debt from building up.Founded in 2014, Undue Medical Debt has become one of the largest organisations dedicated to eliminating medical debt in the United States. The non-profit changed its name from RIP Medical Debt in 2024 to reflect its broader mission of addressing healthcare-related financial hardship. Since its launch, the organisation says it has abolished more than $40 billion in medical debt for over 27 million people. That makes it one of the country’s largest charitable debt relief organisations.
Evan Spiegel and Miranda Kerr’s history of philanthropy
The California medical debt initiative is the latest in a series of major charitable efforts by Evan Spiegel and Miranda Kerr. Through the Spiegel Family Fund, the couple has supported education, public health and community development. In 2022, they donated more than $10 million to clear the student loan debt of the graduating class at Otis College of Art and Design in Los Angeles. The donation allowed hundreds of students to begin their careers free from education-related debt.
