Gov. Phil Murphy on Wednesday announced a fifth round of medical debt relief, partnering with the national nonprofit Undue Medical Debt (Undue) to eliminate more than $59 million in medical bills for over 48,000 New Jersey residents.
By leveraging approximately $500,000 in American Rescue Plan funds, the State’s investment allowed Undue to purchase past-due debt from various providers, collection agencies, and debt buyers. Those impacted are expected to receive official Undue-branded letters in the mail soon.
This latest achievement pushes New Jersey’s total medical debt relief to over $1.3 billion forgiven for more than 780,000 New Jerseyans.
“Far too many New Jersey families have felt the crushing burden of medical debt… This debt adds up fast and can significantly impact an individual’s life and choices, even preventing them from seeking out future medical treatment,” Murphy said. “We are committed to continuing our momentum to create a better, more affordable, and accessible health care system for all New Jersey residents.”
Acting New Jersey Health Commissioner Jeff Brown stressed that the debt relief reinforces the administration’s commitment that “health care is a right, not a privilege reserved for those who can afford it.”
“Medical debt doesn’t just drain bank accounts, it forces impossible choices between prescriptions and groceries, between doctor visits and rent,” Brown added.
New Jersey’s medical debt abolishment initiative complements existing consumer protection policies advanced under the Governor’s leadership. The State is one of the first in the nation to both allocate funding for direct medical debt relief and prohibit credit reporting for most medical debts. New polling shows widespread support for these measures, with 76% of voters wanting state leaders to pass laws protecting them from medical debt.
The debt abolishment process
There is no application process for the relief. Undue purchases large portfolios of debt for pennies on the dollar and instead of collecting, the organization erases the debt.
Individuals qualify for relief if they are either:
- At or below 400% of the federal poverty line.
- Have medical debts that equal 5% or more of their annual income.
Allison Sesso, CEO and president of Undue Medical Debt, praised the state’s leadership. “I’m very proud to see New Jersey reach this remarkable milestone of over $1.3 billion in medical debt erased for New Jersey residents,” she said. “This fifth round of relief demonstrates New Jersey’s unwavering commitment to protecting families from the financial and emotional burden of medical debt.”
