In a surprising turn of events, hundreds of thousands of residents in California are set to receive financial relief thanks to the efforts of Snapchat CEO Evan Spiegel and his wife, model Miranda Kerr, who have worked to eliminate an astonishing $550 million in medical debt.
The couple contributed a significant sum to Undue Medical Debt, a nonprofit that purchases unpaid medical bills from healthcare providers and collection agencies at reduced rates and subsequently forgives those debts for qualifying individuals.
Beginning in mid-July, over 261,000 Californians with eligible balances will be notified by mail that their medical debts have been erased.
Kerr, who also runs KORA Organics, remarked in a video alongside Spiegel, “When a loved one is sick, all you want to do is focus on helping them recover. We wanted to support this initiative to help families concentrate on caring for their loved ones.”
While the exact amount of their donation remains undisclosed, it’s known that Undue Medical Debt acquires large debt portfolios for just $1, meaning that a $10 donation can eliminate around $1,000 in medical debt.
Eligible individuals aren’t able to apply directly; the organization acquires large sums of debt all at once. Those who qualify typically have incomes below 400% of the federal poverty line or possess medical debt that exceeds 5% of their income, as stated by the nonprofit.
This relief comes at a pivotal time, as many Americans grapple with escalating healthcare costs alongside rising living expenses. California, in particular, continues to wrestle with high housing and energy costs, sparking ongoing discussions about the influence of wealthy individuals in mitigating economic inequality.
Allison Sesso, president and CEO of Undue Medical Debt, expressed gratitude towards Spiegel and Kerr for sharing their vision, highlighting a larger crisis in healthcare access and economic stability. “No one should go bankrupt over medical bills,” she stated, noting that one in four adults in the U.S. is currently burdened by medical debt.
The bulk of this relief is heading to San Diego County, where around $99 million in debt was canceled, benefiting over 40,000 people, while residents of Los Angeles County saw about $26.7 million wiped out, aiding nearly 17,500 individuals.
This effort adds to a list of philanthropic activities by Spiegel and Kerr. In 2022, they settled their own student loans after graduating from Otis College of Art and Design. Then, following the devastating wildfires in Los Angeles County in early 2025, Spiegel, having lost his childhood home, joined forces with Snap and its co-founder Bobby Murphy to donate $5 million for immediate relief. They later launched Ministries of Angels, aimed at aiding wildfire recovery, backed by a combined $10 million from various sources, including themselves.
Spiegel, commenting on the challenges faced by families in California, emphasized the pressing need for support amidst rising costs and the burden of unexpected medical expenses.
Finally, Undue Medical Debt has reported that it has now successfully canceled more than $40 billion in medical debts across all 50 states.
