A large burden is being lifted off the shoulders of 260,000 Californians, as Miranda Kerr and her husband, Evan Spiegel, have erased $550 million in medical debt. The couple announced their contribution through a video posted on Instagram.
In the video, they explained their partnership with the nonprofit organization Undue Medical Debt. The couple, who have been married since 2017, made the donation earlier this spring to help families struggling with unpaid medical bills.
By working with Undue Medical Debt, they were able to buy bundled debt for a fraction of its original cost, which is how a multimillion-dollar donation turns into $550 million in total relief. According to the nonprofit, every dollar donated can typically clear $100 in debt.
The relief reaches families and when notices arrive
According to the Daily Mail, the pair filmed the announcement specifically to reassure people that the relief is real. Thousands of families across California should watch their mail, as official notices informing them of their debt erasure are scheduled to begin arriving in mid-July.
In the video, Spiegel, the founder and CEO of Snapchat, said that he and Kerr hope this contribution brings “a little peace of mind” and allows people to focus on what matters the most. The cost of medical care remains a heated topic, and one public figure has suggested a $100 healthcare fine could ease the national debt.
Kerr, the founder of KORA Organics, echoed this by highlighting the importance of family health. She explained that when someone you love is sick, all you want to do is focus on helping them get better. She said that is why they 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.”
The nonprofit, formerly known as RIP Medical Debt, was founded in 2014 by former debt collectors. They focus their efforts on households earning at or less than four times the federal poverty level, or those for whom medical debt makes up at least 5 percent of their annual income.
This is not the first time the couple has made headlines for their giving. In 2022, they paid off more than $10 million in student loans for the graduating class at Otis College of Art and Design in Los Angeles. Unpaid bills lead to other dramatic stories too, such as a woman dodging a nail salon bill. The response online has been largely positive, with many people thanking the couple in the comments on Instagram, and some sharing that they had already received their notices.
Published: Jun 27, 2026 11:30 am