Miranda Kerr And Evan Spiegel Just Wiped Out $550 Million In Medical Debt For More Than 260,000 Californians

On Thursday, Kerr and Spiegel announced they're partnering with the nonprofit Undue Medical Debt to erase more than $550 million in unpaid medical bills, providing relief to an estimated 261,000 people across California. Families don't have to apply, fill out paperwork, or prove financial hardship after the fact. If they qualify, they'll receive a letter letting them know their debt has been forgiven.

"One of the reasons we wanted to share this directly is because if you happen to receive a letter in the mail letting you know your medical debt has been forgiven, we want you to know it's real," Kerr said in a video announcing the initiative.

For many Americans, recovering is only the beginning of the financial burden. Even with health insurance, patients can still end up paying thousands of dollars out of pocket after an emergency room visit, surgery, cancer treatment, or unexpected hospitalization. Medical debt has become one of the leading causes of personal bankruptcy in the United States, leaving many families making impossible choices between paying bills and paying for everyday necessities.

"When someone you love is sick, all you want to do is focus on helping them get better," Kerr said. "That's why we wanted to support this effort and help relieve medical debt so families can focus on caring for their loved ones and really supporting their healing."

The nonprofit purchases qualifying medical debt in bulk from hospitals, physician groups, and collection agencies for a tiny fraction of its face value. Because old medical debt often sells for pennies on the dollar, donations stretch much further than most people would expect. According to the organization, every $10 donated can eliminate roughly $1,000 worth of medical debt.

Since launching, Undue Medical Debt says it has erased more than $40 billion in medical debt across all 50 states. Recipients don't need to enroll or submit an application. Once qualifying debt is purchased and canceled, they're notified directly through the mail.

I never thought I'd get relief.

For people who receive these letters, the relief can be life-changing. One former recipient, Brooklyn, said she was left with thousands of dollars in medical bills after surviving a traumatic car accident while already dealing with a medical crisis. "I never thought I'd get relief," she said. "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."

California counties expected to see the largest share of debt relief include Los Angeles, San Diego, Riverside, San Bernardino, San Joaquin, Stanislaus, Monterey, San Francisco, Sonoma, and Alameda.

Spiegel is a billionaire, with Forbes estimating his net worth at around $2.1 billion. While many people have praised the couple's generosity, others point out that charitable donations don't solve the larger problem of why so many Americans accumulate crushing medical debt in the first place.

Healthcare in the United States continues to spark fierce political debate. Some advocate for broader reforms like universal healthcare or Medicare for All, while others argue the country's private system produces some of the world's most advanced doctors, hospitals, and life-saving treatments. Regardless of where someone falls politically, many Americans can agree that unexpected medical bills and insurance costs often leave families feeling overwhelmed.

Organizations like Undue Medical Debt don't change the healthcare system itself, but they can offer immediate relief to people already caught in it.

Rather than keeping the donation private, Spiegel and Kerr said they wanted to introduce more people to the nonprofit behind the effort. "We also 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.

The organization has received support from everyday donors, community groups, churches, and public figures over the years. While most people can't erase hundreds of millions of dollars in debt, its model means even relatively small donations can have an outsized impact. Spiegel added, "If this resonates with you, we'd encourage you to learn more about Undue Medical Debt and consider supporting their work."