New Jersey Announces $16 Million More in Medical Debt Relief

In the state’s seventh round of medical debt relief, outgoing Governor Phil Murphy announced that nearly 14,000 New Jersey residents will see almost $16 million in medical bills abolished.

The relief is a result of the state’s ongoing partnership with national nonprofit Undue Medical Debt (Undue). By leveraging approximately $165,000 in American Rescue Plan funds, the nonprofit Undue has purchased this debt from the secondary market.

Since first announced in 2023 and initially utilizing a $10 million grant in fiscal year 2024, this partnership has seen nearly $1.5 billion in medical debt eliminated for more than 847,500 New Jersey residents,

“Medical debt should never stand between New Jersey residents and the care they need,” said Murphy.

People granted relief will receive a letter from Undue in the coming weeks.

There is no application process for medical debt relief. Undue purchases large, bundled portfolios of past-due medical debt belonging to those least able to pay for pennies or less on the dollar. Instead of trying to collect, Undue erases the debt.

Those who qualify for medical debt relief are either at or below 400% of the federal poverty line or have medical debts that equal 5% or more of their annual income. These are the only criteria for relief.

Medical debt relief cannot be requested; it depends on providers like hospitals and secondary market partners like collection agencies who choose to engage and sell their qualifying medical debt.

Topics New Jersey