And Then the Billionaire Paid Off $550 Million of Our Debts
Evan Spiegel and Miranda Kerr donated to Undue Medical Debt, which buys medical debt at a fraction of its face value—roughly a penny on the dollar. While the donation was reported as erasing $550 million in medical debt, the actual amount donated was likely around $5.5 million. The article critiques how billionaire philanthropy is often presented with inflated figures and missing context.
Background
- **Evan Spiegel** is the CEO and co-founder of Snapchat (Snap Inc.); his wife is model Miranda Kerr. Snapchat is a publicly traded social media company.
- **Undue Medical Debt** is a U.S. nonprofit that buys unpaid medical debt from hospitals and collection agencies for pennies on the dollar, then forgives it — so a donor's $10 can erase $1,000 in debt.
- The headline "$550 million in medical debt erased" does NOT mean Spiegel donated $550M. The actual donation was likely ~$5.5 million (1 cent per $1 of debt). The author argues this inflates the perceived generosity and obscures the real scale of the gift.
- Similar philanthropic dynamics appear in **Bill Gates** (funding his own foundation) and **Warren Buffett** (pledging wealth but later modifying his plans). The article is skeptical of how billionaire giving is framed in media coverage.