Governor Murphy Announces Third Round of Medical Debt Elimination, Totaling Over $26 Million in Debt Abolished for 20,000 New Jerseyans

As part of the Murphy Administration’s ongoing partnership with Undue Medical Debt, Governor Phil Murphy today announced that over 20,000 New Jersey residents are set to benefit from a third round of medical debt abolishment, totaling over $26 million.

By leveraging approximately $270,000 in American Rescue Plan funds from the State’s investment in medical debt abolishment, Undue has purchased this debt from the secondary market. Letters to those impacted are currently in the mail and expected to arrive within the next week.

As a result of this partnership, $246 million in medical debt has been eliminated for 147,000 New Jersey residents so far.

“Medical debt accumulates fast and can be just as debilitating as any diagnosis or injury. It is unacceptable that the threat of taking on debt could be what discourages people from seeking necessary, life-saving care. That is why in New Jersey, we are working to make health care more affordable and accessible, so our residents can put their health and well-being first,” said Governor Murphy. “Our partnership with Undue Medical Debt, which has already seen over $246 million in debt owed by New Jerseyans retired, complements our Administration’s cross-agency efforts to put health care in reach for all New Jersey families. Today’s announcement underscores this continued commitment to create a better, more affordable, and accessible health care system in our state.”

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 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. For this round of debt abolishment, Undue purchased medical debts that qualify for erasure from the secondary debt market.

This is a one-time abolishment to help remove the financial and emotional burden of unpayable medical debts. Medical debt relief is source-based, depending on community-minded providers like hospitals and secondary market partners like collection agencies who choose to engage.

Those benefiting from medical debt relief will receive an Undue branded letter in the mail.

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7 COMMENTS

    • This rationale is so silly.

      We should give children trauma because their parents experienced it. It wouldn’t be fair otherwise, right?

      The idea is that we want a better world moving forward. If that bothers you then maybe you should examine your feelings.

  1. He didn’t eliminate medical debt… he is allowing every person in NJ who pays their taxes to pay for someone else’s debt. This is Socialism and it doesn’t work. Has never worked! Vote republican!

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