Snapchat CEO Evan Spiegel and his wife, model Miranda Kerr, have funded the elimination of $550 million in medical debt for more than 261,000 Californians. The donation, made to the nonprofit Undue Medical Debt, will provide relief to individuals whose medical bills have been acquired at a steep discount and subsequently canceled.
Letters notifying eligible recipients of their debt forgiveness are expected to be sent out starting in mid-July. According to Undue Medical Debt, individuals qualify for this relief if their annual income is at or below 400% of the federal poverty level, or if their medical debt exceeds 5% of their yearly income. The organization purchases debt in bulk from healthcare providers and collection agencies.
"It’s a growing crisis undermining healthcare access, economic wellbeing and mental health and 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," said Allison Sesso, President and CEO of Undue Medical Debt. Sesso noted that approximately one in four adults in the United States currently carries medical debt.
The initiative targets a significant issue in California, a state known for its high cost of living. This debt relief arrives as many Americans continue to struggle with increasing healthcare costs and broader economic pressures. Discussions surrounding wealth inequality and the role of affluent individuals in addressing financial hardship are ongoing in the state.
San Diego County will see the largest portion of the debt erased, with $99 million in debt canceled for 40,369 residents. Los Angeles County will benefit from $26.7 million in debt forgiveness for 17,466 individuals.
This philanthropic effort by Spiegel and Kerr follows previous contributions. In 2022, they paid off student loans for the graduating class at Otis College of Art and Design. Following wildfires in Los Angeles County in early 2025, Spiegel, who lost his childhood home in the disaster, contributed to immediate relief efforts alongside Snap co-founder Bobby Murphy. They also committed $10 million to launch the Department of Angels, an initiative aimed at supporting wildfire recovery in the region.
"California has given so much to my family and me, and I care deeply about the wellbeing of our communities," Spiegel stated. "At a time when many families are already facing rising costs across nearly every aspect of daily life, an unexpected medical bill can create financial stress that lasts for years."
Undue Medical Debt has facilitated the cancellation of over $40 billion in medical debt nationwide through its various programs. The nonprofit stated that a typical donation of $10 allows them to purchase and cancel approximately $1,000 in medical debt, due to the low cost of acquiring bundled debt portfolios. Potential recipients cannot directly apply for the program, as debt is acquired in large, predetermined batches.