Governor Phil Murphy announced today that more than 48,000 New Jersey residents will soon see their medical debt erased as part of a new round of debt relief made possible through a partnership with the national nonprofit Undue Medical Debt.
The latest phase, the fifth under the Murphy Administration, will abolish roughly $59 million in medical debt statewide. The relief is being funded through $500,000 in American Rescue Plan funds dedicated by the state for medical debt abolishment.
Undue Medical Debt purchases overdue medical debt from hospitals, providers, and debt buyers for just pennies on the dollar and then forgives it entirely. Recipients of the relief will be notified in the coming days through Undue-branded letters sent by mail.
“Far too many New Jersey families have felt the crushing burden of medical debt, often following necessary or life-saving medical care,” said Governor Murphy. “We are committed to continuing our momentum to create a better, more affordable, and accessible health care system for all New Jersey residents through our very last day in office.”
Under Governor Murphy, New Jersey has positioned itself as a national leader in medical debt reform, including by prohibiting most medical debt from being reported to credit agencies and was among the first to allocate state funds for direct debt relief.
In addition to medical debt relief, the Murphy Administration has advanced prescription drug affordability measures, including caps on out-of-pocket costs for insulin and asthma inhalers and new transparency requirements for pharmaceutical benefit managers.
Allison Sesso, president and CEO of Undue Medical Debt, said New Jersey has now erased more than $1.3 billion in medical debt through its partnership with the nonprofit.
“This fifth round of relief demonstrates New Jersey’s unwavering commitment to protecting families from the financial and emotional burden of medical debt,” Sesso said. “No one chooses to get sick, be in an accident, or have a chronic illness.”
There is no application process for the relief. Residents qualify automatically if they earn up to 400% of the federal poverty level or if their medical debt totals 5% or more of their annual income.
Once purchased by Undue, the debt is erased permanently and cannot be reinstated.
I am confused why we have not benefitted from this yet. We are deep in medical debt and are likely eligible
So how do we apply/receive this benefit?
You don’t apply they choose who they wanna choose that’s how the system works. There’s no form to fill out if you get a letter in the mail your chosen if not, then next time around.
Thanks, I’ll keep Davening.
My brother benefited from this and he only knew about it because he received a letter in the mail. He didn’t apply for it.
Its a scam. Feel good moves that help no one except hospitals and insurance companies
Does anyone know someone who chosen this round, or any of the past 4 rounds?? I don’t . Haven’t met anyone yet that was chosen.
Money gors directly to institutions. No person struggling with any medical expenses gets a red penny. Democrats don’t take care of those in need. They only talk about those in need.
I’ve received it twice.
My brother received a notification like 9 months ago that he was chosen out to have debt relieved from a few thousand dollar bill from Community. Then he received another a few weeks later for $87 for a bill he forgot to pay.