In a remarkable act of philanthropy, Snap Inc. CEO Evan Spiegel and his wife, supermodel Miranda Kerr have partnered with Undue Medical Debt to eliminate $550 million in medical debt for more than 261,000 Californians. This substantial donation highlights the growing crisis of medical debt in the United States and the impact of generous contributions on communities in need.

The initiative, announced on June 25, 2026, is the first statewide effort by Undue Medical Debt in California. The nonprofit organization acquires medical debt in bulk from hospitals, physician groups, and collection agencies for a fraction of the original cost. This approach allows them to relieve significant debt with relatively small donations. For instance, every $10 donated to Undue Medical Debt relieves an average of $1,000 in medical debt.

How the Debt Relief Works

Undue Medical Debt’s process is straightforward yet impactful. The organization purchases medical debt portfolios from participating groups and hospitals, often for pennies on the dollar. Once acquired, the debt is forgiven, providing immediate relief to eligible individuals. To qualify, recipients must either be at or below 400% of the federal poverty level or have medical debt that constitutes 5% or more of their annual income.

Recipients of this debt relief do not need to apply or take any action. Instead, they will receive a letter in the mail from Undue Medical Debt starting in mid-July notifying them of their debt forgiveness. This approach ensures that the relief reaches those who need it most without any administrative burden.

Impact on Southern California

The donation has a significant impact on Southern California, with about half of the relief going to residents in the region. The breakdown of debt relief by county is as follows:

  • San Diego County$99 million for 40,369 people
  • Riverside County$69.5 million for 35,486 people
  • San Bernardino County$56.5 million for 32,034 people
  • Los Angeles County$26.8 million for 17,466 people

These figures underscore the widespread nature of medical debt and the critical need for such initiatives. The relief provided by Spiegel and Kerr’s donation will alleviate financial stress for thousands of families, allowing them to focus on their health and well-being.

The Broader Context of Medical Debt

Medical debt is a pervasive issue in the United States, affecting 1 in 4 adults. The rising cost of living, coupled with soaring healthcare expenses, has exacerbated this problem. In California, the high cost of housing and energy further compounds the financial strain on many families. The donation from Spiegel and Kerr comes at a time when concerns about wealth inequality and the role of billionaires in addressing societal issues are at the forefront of political debates.

Undue Medical Debt has made significant strides in tackling this crisis, having abolished more than $40 billion of medical debt across all 50 states. The organization’s efforts are supported by various public figures and everyday people who recognize the urgent need for relief. For example, in 2026, 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.

The impact of such initiatives is profound. As noted by Undue Medical Debt President and CEO Allison Sesso medical debt undermines healthcare access, economic well-being, and mental health. The organization’s belief that no one should go bankrupt because of a medical diagnosis resonates with many, including Spiegel and Kerr.

In a video announcing the news, Kerr emphasized the importance of focusing on healing rather than financial burdens. “When someone you love is sick, all you want to do is focus on helping them get better,” she 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.”

Spiegel, who has a net worth of approximately $2 billion has a history of philanthropic efforts. In 2026, he and Kerr paid off the student loans for the graduating class of Otis College of Art and Design. In 2026, Spiegel was among the business leaders and philanthropists who helped form the Department of Angels, a group aimed at aiding L.A.’s fire recovery efforts. The california community Foundation, Snap, Spiegel, and Snapchat co-founder Bobby Murphy committed $10 million to help start that group.

The generosity of Spiegel and Kerr highlights the potential for significant impact when resources are directed towards addressing critical societal issues. Their donation to Undue Medical Debt not only provides immediate relief but also draws attention to the broader crisis of medical debt in the United States.