Snapchat CEO Evan Spiegel and his wife, model and entrepreneur Miranda Kerr, have backed one of California’s largest medical debt relief efforts. Their donation will help erase more than $550 million in unpaid medical bills for more than 261,000 residents.
The initiative was implemented through the non-profit organization Undue Medical Debt. The charity purchases eligible medical debt from health care providers and debt collectors before canceling it. The relief is expected to help low-income families and others struggling with health care costs. Recipients do not need to apply or repay canceled debts. The donation also highlights the growing role of philanthropy in addressing medical debt in the United States.
How Evan Spiegel and Miranda Kerr’s $550 Million Medical Debt Donation Works
Debt relief is made possible through Non-Permissible Medical Debt, formerly known as RIP Medical Debt. Instead of paying the full value of unpaid medical bills, the organization purchases eligible debt portfolios on the secondary market at deeply discounted prices. Because medical debt is often sold for only a fraction of its original value, donations can erase hundreds of millions of dollars in debt. According to the organization, every dollar donated can eliminate about $100 in medical debt, although the exact amount depends on the debt portfolio.
Residents do not need to apply for assistance. Instead, non-accrued medical debt determines which accounts qualify using financial criteria. In general, debt may qualify if the family does not earn more than four times the federal poverty level or if the medical debt equals at least 5 percent of the annual household income. Eligible recipients are notified immediately after their debt is cancelled. Forgiven debt also does not create a tax liability.
Why is medical debt still a major problem?
Medical debt affects millions of Americans, including many people with health insurance. High deductibles, copayments, emergency treatment, and out-of-network fees often leave families with bills they can’t afford. Financial experts say medical debt can hurt credit scores, delay health care and create long-term financial distress. Organizations like Undue Medical Debt work to reduce this burden while also advocating for reforms to prevent medical debt from accumulating.Founded in 2014, Undue Medical Debt has become one of the largest organizations dedicated to eliminating medical debt in the United States. The nonprofit changed its name from RIP Medical Debt in 2024 to reflect its broader mission of addressing health care-related financial hardship. Since its launch, the organization says it has eliminated more than $40 billion in medical debt for more than 27 million people. This makes it one of the largest debt relief charities in the country.
Evan Spiegel and Miranda Kerr’s History of Philanthropy
The California Medical Debt Initiative is the latest in a series of major philanthropic efforts by Evan Spiegel and Miranda Kerr. Through the Spiegel Family Fund, the couple supported education, public health and community development. In 2022, they donated more than $10 million to pay off the student loan debt of the graduating class at Otis College of Art and Design in Los Angeles. This donation allowed hundreds of students to begin their careers without education-related debt.