FRANKFORT, Ky. (WMDJ) - More than 130,000 Kentuckians are expected to have medical debt erased through a new statewide program.

Gov. Andy Beshear signed an executive order establishing the Team Kentucky Medical Debt Relief Program and directing $2.5 million to the nonprofit Undue Medical Debt.

The organization purchases medical debt from participating hospitals and collection agencies at a fraction of the amount owed. State officials say the funding is expected to eliminate about $250 million in medical debt.

There is no application process. To qualify, a Kentucky resident must have medical debt equal to at least 5% of their annual income or have an income at or below 400% of the federal poverty level, which is about $100,000 for a family of three.

The first 46,000 qualifying Kentuckians are expected to have up to $100 million in debt erased beginning this week. Notification letters are scheduled to begin arriving next week.

Recipients do not need to take any action, but are encouraged to keep the letter as proof that the debt was erased.