Snapchat co-founder and billionaire Evan Spiegel and Miranda Kerr help erase $550 million in medical debt for 261,000 Californians

For thousands of American families, an unexpected medical bill can become a financial burden that lasts for years. A hospital visit, an emergency ambulance ride or treatment for a serious illness can leave patients struggling to pay their bills long after they have recovered. Now, a major philanthropic contribution from Snapchat CEO Evan Spiegel and his wife, model and entrepreneur Miranda Kerr, has helped ease that burden for more than 261,000 people in California. The couple supported Undue Medical Debt, a nonprofit that purchases medical debt at reduced prices and cancels it for people facing financial hardship. Their work has helped erase more than $550 million in medical debt, providing some relief to families struggling with healthcare costs and other rising expenses.

How Evan Spiegel And Miranda Kerr Helped Erase $550 Million In Medical Debt

The couple's contribution has enabled Undue Medical Debt to cancel outstanding medical bills for people across California. The exact amount donated by Spiegel and Kerr has not been disclosed, but the resulting debt relief has reached hundreds of thousands of residents.

"When someone you love is sick. All you want to do is focus on helping them get better," Kerr said in a video message with Spiegel, according to the Los Angeles Times. She added that they wanted to support an effort that would allow families to concentrate on caring for their loved ones rather than worrying about medical bills.


The impact has been spread across the state. San Diego County received approximately $99 million in debt relief, benefiting more than 40,000 people. In Los Angeles County, around $26.7 million in medical debt was erased for more than 17,000 residents, according to the nonprofit. The organisation said eligible recipients would be notified by letter. People cannot directly apply to have their specific bills cancelled because the nonprofit acquires qualifying debts in bulk.

How Does Undue Medical Debt Cancel Hospital Bills?

The organisation's approach works differently from conventional financial assistance programmes. Undue Medical Debt buys large pools of qualifying medical debt from hospitals, healthcare providers and collection agencies at significant discounts, rather than paying the full value of individual bills. It then cancels those debts instead of attempting to collect the money.

According to the nonprofit's website, every $10 donated can eliminate an average of $1,000 in medical debt. This allows donations to deliver relief on a much larger scale than their original monetary value might suggest. The programme targets people facing financial hardship. Eligibility generally includes households earning at or below 400% of the federal poverty level or individuals whose medical debt amounts to at least 5% of their annual income. However, the relief does not cover every outstanding medical bill. It depends on which debt portfolios the organisation is able to acquire and whether individuals meet its eligibility criteria.

Why Medical Debt Remains A Major Problem In America

The donation comes as healthcare expenses continue to place pressure on American households. Even families with some financial security can struggle when an unexpected illness or emergency leads to bills they cannot afford. “This is a growing crisis that impacts access to healthcare, financial well-being, and mental health,” Allison Sesso, president and chief executive of Undue Medical Debt, told the Los Angeles Times.

The Associated Press also has reported on the size of the problem, noting that about 100 million Americans are dealing with medical debt and that the burden falls disproportionately on lower-income households and other financially vulnerable populations. Medical debt relief can provide immediate breathing room, helping families redirect money towards rent, food, education or future healthcare needs.

From Student Loans To Los Angeles Wildfire Recovery

The couple's latest initiative forms part of a wider record of charitable giving. In 2022, Spiegel and Kerr helped pay off student loans for graduates of the Otis College of Art and Design in Los Angeles. They have also supported recovery efforts following the devastating January 2025 wildfires in Los Angeles County. Spiegel, who lost his childhood home in Pacific Palisades, joined other business leaders in supporting the Department of Angels, an initiative that works with affected communities and helps direct resources towards recovery.

The organisation provides grants, technical assistance and coordination for community-led rebuilding efforts. Its work includes helping residents navigate recovery needs and ensuring that affected communities have a voice in decisions. The medical debt initiative and wildfire recovery work show how the couple's philanthropy extends beyond a single cause.