Interoffice Memorandum
DATE: July 19, 2024
TO: Mayor Jerry L. Demings and County Commissioners
THROUGH: Venerria L. Thomas, Director, Community and Family Services Department
FROM: Warren H. Lakhan, Family Services Administrator
CONTACT: Milagros Serrano
PHONE: 407-836-8959
DIVISION: N/A
ACTION REQUESTED:
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Approval of Federal Subrecipient Agreement (#Y24-2225) between Orange County, Florida and Medical Debt Resolution, Inc. doing business as Undue Medical Debt for a federal subaward of an amount not to exceed $4,500,000.00 from a federal award issued by the U.S. Department of the Treasury for the specific purpose of Providing funding for medical debt relief and authorization for the Procurement Division Manager or designee to execute such Federal Subrecipient Agreement and any necessary modifications, amendments, and extensions.
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PROJECT: N/A
PURPOSE: This subaward is issued from the American Rescue Plan Act of 2021 Coronavirus Local Fiscal Recovery Fund allocation received by the County on May 18, 2021. This agreement will define the working relationship between Orange County, Florida and Medical Debt Resoution, Inc. doing business as Undue Medical Debt (“Subrecipient”) for the performance period of August 1, 2024, to September 30, 2026. The Community and Family Services Department and the Subrecipient’s Chief Executive Officer will be availabe to the Board during the Board’s discussion of medical debt relief for Orange County residents.
In accordance with Section 17-286 of the Orange County Code, agreements between the Board and nonprofit organizations are excluded from competitive procurement requirements.
On February 20, 2024, the Board of County Commissioners authorized the use of $4,500,000 in ARPA funding for the provision of medical debt relief for eligible Orange County residents. Subsequently, the Subrecipient, a third party adminstrator, was identified as an eligible non-profit with the capacity to peform this work. On June 18, 2024, staff requested Board action on an agreement with the Subrecipient, and the Board directed staffto gather additional information. The Subrecipient will administer the medical debt relief project, abolishing an estimated $424,000,000 of medical debt for approximately 154,593 eligible Orange County residents. Eligible residents include those who have experienced negative economic impacts caused by the COVID-19 pandemic which disproportionately impacted low-income residents and residents burdened by high medical debt. “Low-Income” residents include those living in a household with income between 0% and 400% of the Federal Poverty Guidelines, and residents “Burdened by Medical Debt” include those having medical debt that equals or exceeds five percent of total household income. Orlando Health and AdventHealth have indicated their willingness to particpate in this medical debt relief project. The Subrecipient will notify residents of debt abolishment and include information on how to access hospital charity care, no-cost or low cost medical care, and no-cost financial assistance. Orange County’s Communty and Family Services Department will oversee this project including quarterly review and approval of invoices submitted by the Subrecipient for authorized expenses and submittal of required accountabilty reports to the U.S. Department of the Treasury.
BUDGET: N/A