Spiegel and Kerr erase $550M in medical debt for Californians

In June 2026, Undue Medical Debt announced that a gift from Snap Inc. CEO Evan Spiegel and his wife, model Miranda Kerr, erased more than $550 million in medical debt for more than 261,000 people in California. The nonprofit described the contribution as its largest statewide debt cancellation in the state to date.

How the debt relief worked

The relief required no application from recipients. Undue Medical Debt, formerly known as RIP Medical Debt, purchases qualifying unpaid bills from hospitals, physicians' groups and collection agencies for a fraction of their face value. The organization then erases the debt and sends a notice to each individual.

Eligibility was determined by income and debt levels. According to the source, eligible individuals were those at four times the federal poverty level or less, which is approximately $100,000 for a family of four, or those with medical debt equal to 5% or more of their annual income.

The debt cancellation was distributed across various counties. San Diego County saw the largest reduction, with some $99 million wiped out for more than 40,000 people. Riverside County followed, with about $69.5 million erased for more than 35,000 people.

Research on medical debt relief

The impact of such relief has been studied by economists. A 2024 paper in the Quarterly Journal of Economics by Raymond Kluender, Neale Mahoney, Francis Wong, and Wesley Yin examined the effects of medical debt relief through two randomized experiments conducted between 2018 and 2020 in collaboration with RIP Medical Debt.

The study found that credit access improved modestly, but only for debt that would otherwise remain on credit reports. Payments on other outstanding medical bills dropped slightly. However, the authors found no effects on survey measures of mental health, physical health, health care use, or financial wellness. The researchers noted that medical debt has become less visible in credit reports in recent years, which may reduce the credit benefits of relief today.

Wildfire recovery and recognition

Spiegel and Kerr’s philanthropy also extends to supporting survivors of the January 2025 Los Angeles wildfires. Spiegel was honored at the 8th annual George H.W. Bush Points of Light Awards in Washington, D.C., on October 13, 2026, for his service and charitable work.

Spiegel, whose childhood home burned in the fires, stated that many residents are still waiting for federal assistance. "Angelenos are still waiting for federal assistance," he told PEOPLE. "So at a moment when, obviously, I’m grateful to receive this award and obviously grateful for the work we’ve accomplished so far, I think it’s also just really important to reflect on how much more we still have to do."

Through the Department of Angels, a nonprofit supporting wildfire recovery, the couple has helped provide targeted grants. They also contributed to the launch of the Los Angeles Fire Human Exposure and Long-Term Health Study to examine the health consequences of exposure to the fires.

Miranda Kerr explained the motivation behind the medical debt initiative in a statement to the Los Angeles Times. "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."

Why it matters

This initiative highlights the scale of private philanthropy in addressing systemic healthcare costs. While research suggests that debt relief has limited measurable impact on broad health outcomes, it provides immediate financial relief to hundreds of thousands of families. The Spiegel and Kerr contribution underscores the ongoing challenges faced by Californians, both from medical debt and from the long-term recovery needs following natural disasters.

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Sources

• hindustantimes.com: A gift from Evan Spiegel and Miranda Kerr erased $550 million in medical debt for more than 261,000 Californians, with no application needed | Hindustan Times
• timesofindia.indiatimes.com: Snap CEO Evan Spiegel and Miranda Kerr help erase $550 million in medical debt for 261,000 Californians; support LA wildfire survivors; Spiegel recalls childhood home burning in 2025 fires - The Times of India
• people.com: Snapchat’s Evan Spiegel and Wife Miranda Kerr Donate Millions to Change Lives in California (Exclusive)

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.