Nearly 20,000 New Jersey residents will have a combined $90 million in medical debt eliminated in the ninth and final round of the state’s medical debt relief program, the New Jersey Department of Health announced today

The latest round brings the total amount of medical debt retired through the state’s partnership with nonprofit Undue Medical Debt to more than $1.6 billion for nearly 900,000 New Jersey residents.

The program, which launched in 2023, was funded initially by the state and later expanded using one-time federal American Rescue Plan funds. Undue Medical Debt purchases qualifying medical debt from health care providers and eliminates it on behalf of eligible patients.

Letters notifying recipients of the latest round of debt relief began arriving this week. Residents who receive the letters do not need to take any action.

To qualify, residents had to either have an income at or below 400% of the federal poverty level or have medical debt totaling at least 5% of their annual income.

The latest round marks the completion of the program after its funding was fully expended.

The state Department of Health said its Office of Healthcare Affordability and Transparency will continue working on the broader issue of health care costs following the end of the debt relief program.

State research has found that rising health care prices, rather than increased utilization, are the primary driver of health care cost growth in New Jersey.

The department said other initiatives include efforts to expand access to preventive and routine care, chronic disease management and health services in rural areas. The state also provides funding through programs including Charity Care and the Uncompensated Care Fund to help hospitals and federally qualified health centers serve residents who cannot afford care.

New Jersey has also enacted restrictions on certain medical debt collection practices. Under the Louisa Carman Medical Debt Relief Act, medical creditors and debt collectors are prohibited from reporting certain medical debts to consumer reporting agencies and face other restrictions on collection practices.

The state’s fiscal 2027 budget includes $83.9 million in state and federal funding for Charity Care and $39 million for the Uncompensated Care Fund, according to the Department of Health.

Because the program relied on qualifying debt being made available by participating health care providers and secondary-market partners, individuals could not apply directly for debt relief.

Those whose debt was selected for elimination will receive an Undue-branded notification by mail.