Evan Speigel, co-founder and CEO of Snap, Inc., the company that owns Snapchat, along with his wife, Australian model Miranda Kerr, have just announced a partnership to relieve $550 million in medical debt for an estimated 261,000 Californians.
The couple announced on Thursday morning that they have partnered with nonprofit Undue Medical Debt to provide relief to families struggling with medical debt and rising healthcare costs.
Undue Medical Debt is a nonprofit that buys debt “in bulk,” meaning that for every $10 donated to the organization, $1,000 of medical debt is relieved for families in need. In total, the organization has relieved over $40 billion in debt in all 50 states.
And it’s simple — those offered debt relief don’t have to do anything. The gift reaches people directly through qualifying debt acquired and canceled by Undue Medical Debt. According to the organization, California families benefiting from this relief can expect envelopes to start arriving in the mail in mid-July.
“One of the reasons we wanted to share this directly is because if you happen to receive a letter in the mail saying your medical debt has been forgiven, we want you to know it’s real,” Kerr said in a video announcing the news.
Medical debt has become the leading cause of bankruptcy — a more pressing concern than the economy — which takes a serious toll on mental well-being.
“When someone is sick or recovering, the focus should be on healing and caring for the people you love, not on bills that can follow a family for years,” Spiegel and Kerr said in a statement.
“At a time when so many Californians are already struggling with rising costs, medical debt can make it even harder for families to regain their footing. We’re grateful to support Undue Medical Debt’s work to help lift that burden, and we hope this relief gives families more peace of mind and more room to prioritize their health, their loved ones, and their future.”
Why is this good news?
This announcement will clear half a billion dollars worth of debt for just over a quarter of a million California families. Undue Medical Debt is able to do this by acquiring qualifying medical debt “in bulk” from providers like hospitals, physician’s groups, and collection agencies.
By purchasing debt for pennies on the dollar, the organization uses donations, like the support from Spiegel and Kerr, to erase those debts out of the blue, surprising recipients.
The top 10 counties in California that will benefit from this partnership are as follows:
- San Diego County
- Riverside County
- San Bernardino County
- San Joaquin County
- Los Angeles County
- Stanislaus County
- Monterey County
- San Francisco County
- Sonoma County
- Alameda County
For recipients of medical debt relief, the impact is immediate and powerful.
“In 2018, I was in a traumatic car accident during a medical crisis. The ambulance bill alone was over $4,600 — a number that haunted me for years while I was trying to rebuild my life, go back to school, and raise my daughter as a single mom,” Brooklyn, a former recipient of medical debt relief in Woodland, California, shared in a statement.
“I never thought I’d get relief. When I opened the letter from Undue Medical Debt, I cried. Not just because the money was erased, but because someone out there believed I deserved a second chance. This isn’t just about debt — it’s about hope.”
What’s the nuance?
While this partnership signals generosity from Spiegel and Kerr, it’s worth noting that Spiegel is a billionaire. As of the writing of this article, Forbes reported he had a personal net worth of $2.1 billion. He has also made waves for Snap’s recent release of a new AR glasses product, priced at $2,195.
This level of wealth, combined with the reality that millions of Americans are forced into debt to access medical care, highlights growing wealth disparities between the working class and ultra-wealthy figures like Spiegel and Kerr.
While some may point to more systemic solutions to confront the healthcare crisis, like universal healthcare or medicare for all, organizations like Undue Medical Debt still provide much-needed relief for people in the here and now.
Representatives at Undue Medical Debt also praise Spiegel and Kerr for their support of these efforts.
“The scale of this gift to Californians is truly astonishing, unburdening over a quarter million families of over half a billion dollars of un-payable medical debt,” Undue Medical Debt president and CEO Allison Sesso said in a statement.
“In the U.S. 1 in 4 adults are in medical debt; it’s a growing crisis undermining healthcare access, economic wellbeing, and mental health. We’re so grateful that Evan Spiegel and Miranda Kerr share our belief that no one should go bankrupt because of a cancer diagnosis, and no family should have to choose between insulin and groceries.”
Who else is helping?
Undue Medical Debt has relieved over $40 billion in medical debt across the country, and that has been made possible with the support of other public figures, as well as everyday people.
For instance, in 2023, thousands of people rallied to raise over $1 million for the nonprofit in honor of Casey McIntyre, a woman whose dying wish was to relieve medical debt for people in her community.
Sharon McMahon, an Instagram educator and commentator, raised over $1 million to clear medical debt, as well, alongside her followers.
Entire communities have also gathered to support the cause, including churches, and even party-goers at New York’s annual “Debt Gala,” an alternative to the coveted MET Gala.
These examples make it clear: You don’t have to be a billionaire to make a difference.
“We … wanted to shine a light on the incredible work Undue Medical Debt is doing because so many people have never actually heard of them,” Kerr said in the announcement video.
“If this resonates with you, we encourage you to learn more about Undue Medical Debt and consider supporting their work,” Spiegel added.
You may also like: A Woman’s Posthumous Medical Debt Fundraiser Went Viral — Surpassing Humble Goal and Raising Over $1M
Header image courtesy of Snap, Inc.
