NJ Residents' Medical Debt Relief Reaches $930M

In a significant move to alleviate financial burdens, New Jersey Governor Phil Murphy announced a partnership with Undue Medical Debt and RWJBarnabas Health to erase nearly $930 million in medical debt for approximately 629,000 residents. This initiative targets individuals at or below 400% of the poverty line or those with medical debts equaling 5% of their income. There is no application process for this relief; instead, eligible households will receive a letter from Undue Medical Debt in the coming weeks.

Governor Murphy's administration has been actively working to address medical debt, marking this as the fourth major debt forgiveness effort in the state. The relief effort is part of a broader strategy to make healthcare more affordable and accessible, leveraging funds from the American Rescue Plan. Governor Murphy emphasized the importance of allowing residents to focus on recovery rather than financial stress, stating, "New Jerseyans should not have to scrimp and save to ensure their basic health care needs are met."

The initiative involves purchasing large portfolios of past-due medical debt and erasing it, a process facilitated by Undue Medical Debt. The organization collaborates with hospitals to identify qualifying debts, ensuring that relief reaches those most in need. Allison Sesso, CEO of Undue, noted the impact of these efforts, highlighting the emotional and financial relief provided to thousands of families.

This latest round of debt forgiveness follows previous initiatives that have collectively surpassed $1 billion in medical debt relief for New Jersey residents. The program underscores New Jersey's commitment to consumer protection and healthcare affordability, setting a precedent as one of the few states actively providing such relief.