New Jersey Residents Receive $86 Million in Medical Debt Forgiveness

New Jersey Governor Phil Murphy has announced a significant relief initiative, with over 53,000 residents set to benefit from the cancellation of a combined $86 million in medical bills. This initiative is part of the state’s ongoing collaboration with the national nonprofit organization, Undue Medical Debt.

This recent announcement marks the sixth round of medical debt relief in New Jersey. Since the inception of this partnership, nearly $1.4 billion in medical debt has been eliminated for more than 828,000 residents, as reported by the Murphy administration.

Utilizing approximately $600,000 in American Rescue Plan funds, Undue has strategically purchased this medical debt from healthcare providers. Governor Murphy emphasized the importance of this initiative, stating, “Nobody should have to delay life-saving care because they fear the crushing burden of medical debt or cut corners to ensure their basic health care needs are met.”

In addition to debt relief, the state has implemented various policies aimed at protecting New Jerseyans from falling into medical debt. These include the prohibition of credit reporting for most medical debts, caps on out-of-pocket costs for essential medications like insulin and asthma inhalers, and reforms designed to enhance transparency within the pharmaceutical supply chain. Furthermore, there is increased oversight of pharmaceutical benefits management companies.

Importantly, there is no application process required for residents to receive medical debt relief. Undue acquires large, bundled portfolios of past-due medical debt from providers, specifically targeting those who are least able to pay. Rather than attempting to collect on these debts, Undue erases them entirely.

Eligibility for medical debt relief is straightforward: individuals must either be at or below 400% of the federal poverty line or have medical debts that amount to 5% or more of their annual income. This one-time debt cancellation is designed to alleviate financial burdens for those who qualify.

It’s important to note that medical debt relief cannot be actively requested by individuals. Instead, it relies on healthcare providers, such as hospitals, and secondary market partners, like collection agencies, to sell qualifying medical debt to Undue.

Beneficiaries of this medical debt relief initiative will receive a letter from Undue in the mail, informing them of their debt cancellation.

New Jersey Governor Phil Murphy has announced a significant relief initiative, with over 53,000 residents set to benefit from the cancellation of a combined $86 million in medical bills. This initiative is part of the state’s ongoing collaboration with the national nonprofit organization, Undue Medical Debt.

This recent announcement marks the sixth round of medical debt relief in New Jersey. Since the inception of this partnership, nearly $1.4 billion in medical debt has been eliminated for more than 828,000 residents, as reported by the Murphy administration.

Utilizing approximately $600,000 in American Rescue Plan funds, Undue has strategically purchased this medical debt from healthcare providers. Governor Murphy emphasized the importance of this initiative, stating, “Nobody should have to delay life-saving care because they fear the crushing burden of medical debt or cut corners to ensure their basic health care needs are met.”

In addition to debt relief, the state has implemented various policies aimed at protecting New Jerseyans from falling into medical debt. These include the prohibition of credit reporting for most medical debts, caps on out-of-pocket costs for essential medications like insulin and asthma inhalers, and reforms designed to enhance transparency within the pharmaceutical supply chain. Furthermore, there is increased oversight of pharmaceutical benefits management companies.

Importantly, there is no application process required for residents to receive medical debt relief. Undue acquires large, bundled portfolios of past-due medical debt from providers, specifically targeting those who are least able to pay. Rather than attempting to collect on these debts, Undue erases them entirely.

Eligibility for medical debt relief is straightforward: individuals must either be at or below 400% of the federal poverty line or have medical debts that amount to 5% or more of their annual income. This one-time debt cancellation is designed to alleviate financial burdens for those who qualify.

It’s important to note that medical debt relief cannot be actively requested by individuals. Instead, it relies on healthcare providers, such as hospitals, and secondary market partners, like collection agencies, to sell qualifying medical debt to Undue.

Beneficiaries of this medical debt relief initiative will receive a letter from Undue in the mail, informing them of their debt cancellation.