Hawks star Trae Young wiped out $1 million in medical debt for people in Atlanta with a $10,000 donation

His donation helped 570 people in the Atlanta area and paid off $1,059,186.39 in medical debt.
RIP Medical Debt buys debt portfolios on a secondary market from healthcare providers.
The organization said every $1 donated helps pay off about $100 worth of debt.
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Atlanta Hawks star Trae Young wiped out $1 million in medical debt for residents in his team's city with a $10,000 donation to RIP Medical Debt.

This is the second year that 21-year-old Young has donated to RIP Medical Debt, an organization that helps people pay debt from medical providers by buying debt portfolios on a secondary market for pennies on the dollar.

Young donated the $10,000 through his organization, The Trae Young Foundation , which offers programs on mental health and bullying.

"The city of Atlanta has welcomed me with open arms," Young said in a statement to WSBTV . "Giving back to this community is extremely important to me. I hope these families can find a bit of relief knowing that their bills have been taken care of as we enter the New Year."

Young's donation was able to wipe out debt for 570 people in the Atlanta area, at a total of $1,059,186.39.

He later tweeted : "Blessed to have such a Great Team around me to help me make this happen!!"

Those who were affected by Young's donation were notified by email, according to CBS Sports .

RIP Medical Debt is able to buy debt for pennies on the dollar because healthcare providers sell it to them at a deeply discount price when they can't collect it from debtors themselves.

The organization buys the debt in large portfolios. RIP Medical spokesperson Daniel Lempert told CBS News that for every $1 donated to the organization, they are able to clear about $100 in medical debt.

To qualify for debt forgiveness through the organization, you must make less than twice the federal poverty level, have debt that makes up more than 5% of your earnings, or be facing insolvency, according to RIP Medical Debt's website .

RIP Medical Debt says it has wiped out more than $1 billion in medical debts since it first launched.

Lempert told CBS News that Young's donation sets a "great example" for his fans.

"The nonprofit is always thrilled to work with local campaigners because it focuses relief on a specific location and makes it personal for the donor," he said.

Insider has contacted Young's agents and RIP Medical Debt for comment.

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