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Council approves $1M medical-debt purchase contract amid questions on administrative fees; adds six-month review
Summary
Lexington’s council approved a $1 million agreement to purchase unpaid medical debt through Undue Medical Debt, a three-year contract expected to relieve an estimated $90 million in debt, after debate about administrative costs; an amendment requires a six‑month review presented to council by the CAO at a work session.
The Lexington City Council approved a $1,000,000 contract with Undue Medical Debt to purchase unpaid medical debt for qualifying Fayette County residents, following extensive council discussion about administrative fees, sole-source procurement, safeguards and reporting.
Vice Mayor Wu and other supporters described the program as a one-time investment from last year’s fund balance that could purchase roughly $90,000,000 in unpaid medical debt for Fayette County residents and potentially affect up to 32,000 residents. Councilmembers and staff reported the contract is for three years, is terminable at will or for cause, and includes…
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