Governor Murphy Announces Elimination of $100 Million in Medical Debt for Almost 50,000 New Jerseyans
TRENTON – Governor Phil Murphy announced today that thousands of eligible individuals and families across New Jersey will have some or all of their medical debt eliminated as part of a major initiative to make health care more affordable and accessible. By leveraging over $550,000 in American Rescue Plan funds and partnering with Undue Medical Debt (Undue), the administration is delivering relief to 17,905 New Jersey residents who owed $61.6 million to Prime Healthcare hospitals and an additional 31,748 residents owing more than $38.4 million to other providers through the secondary debt market, primarily collections agencies. Prime Healthcare partnered with Undue to sell qualifying, unpayable medical debts for relief.
“When someone is sick or injured, they should be able to focus on what matters most – getting better – rather than worrying about how they will pay for the life-saving care and services rendered to them. New Jerseyans should not have to scrimp and save to ensure their basic health care needs are met or to pay down lofty medical debts resulting from tragic accidents or devastating diagnoses,” said Governor Murphy. “Medical debt accumulates very quickly and can follow a person for decades. With this strategic investment and our partnership with Undue, we are wiping the slate clean for thousands of New Jersey families, eliminating their debt, and making a real, tangible impact on their lives. Today’s announcement continues our momentum in creating a better, more affordable, and accessible health care system for all New Jersey residents.”
“Once again, through Governor Murphy’s leadership, we are supporting NJ residents and families through immediate and direct relief while also changing policy to ensure systemic and lasting change and protections,” said Shabnam Salih, Director of the Office of Health Care Affordability and Transparency. “Today’s announcement will lift the burden of medical debt from tens of thousands of NJ residents and families, and with the Governor’s signing just last month of the Louisa Carman Medical Debt Relief Act, more New Jerseyans are shielded against the unfair consequences of credit reporting of medical debt amongst other protections.”
This announcement follows the signing of the Louisa Carman Medical Debt Relief Act which safeguards New Jersey families from accumulating medical debt protects against predatory medical debt collectors and prohibits the reporting of medical debt to credit reporting agencies. New Jersey is a leading state in consumer protection policies being one of only five states in the nation that both prohibit medical debt reporting to credit agencies and has allocated funding to provide residents with direct medical debt relief.
“As the leader of a nonprofit based in the tri-state area it’s thrilling to see this magnitude of medical debt relief for New Jersey residents across the state,” said Allison Sesso, CEO and president of Undue Medical Debt. “We hope the tens of thousands of recipients in this first wave of medical debt relief are encouraged to re-engage with the healthcare system and feel both financial and emotional relief. No one chooses to get sick be in an accident or have a chronic illness; we look forward to helping even more people over this partnership with New Jersey government.”
“We are thrilled to join into this partnership which furthers our mission ‘Saving Hospitals Saving Jobs Saving Lives,’” said Sonia Mehta MD CEO Region II Corporate Chief Medical Officer Chief Academic Officer Prime Healthcare “We commend Gov Murphy’s leadership proud team up Undue Medical Debt initiative relieve crippling many patients vulnerable providing exceptional compassionate community”
There is no application process for medical debt relief Undue works hospital systems country purchase large bundled portfolios past-due belonging least able pay Instead trying collect erases
Those qualify either four times below federal poverty level equal 5% annual income criteria worked providers identify unpaid qualify erasure This one-time abolishment help remove financial emotional burden unpayable source-based depending community-minded providers hospitals choose engage cannot requested
Those benefiting receive branded letter mail beginning Monday August 19 Learn more here
