Nearly two months after the initial round of medical debt elimination, New Jersey Governor Phil Murphy has announced a second wave, which will benefit 77,000 residents by abolishing $120 million in medical debt. This effort is part of a partnership with Undue Medical Debt and aims to alleviate financial burdens for eligible individuals and families across the state.
Governor Murphy discussed this initiative with Andrew Rose Gregory, who played a significant role in raising $1.1 million to help eliminate medical debt following his wife's passing. The funds were used to leverage approximately $900,000 from the American Rescue Plan, enabling Undue to collaborate with Atlantic Health System in purchasing unpayable medical debts.
"Investing in affordable and accessible health care allows residents to prioritize their well-being without having to take on the significant burdens of medical debt," said Governor Murphy. He emphasized that this action marks progress towards a health care system that reduces financial constraints for New Jerseyans.
Shabnam Salih, Director of the Office of Health Care Affordability and Transparency, expressed satisfaction with this development: “Today’s announcement is lifting the burden of $120 million in debt off their shoulders.”
The state's legislative efforts include the Louisa Carman Medical Debt Relief Act, which protects against predatory practices and prevents medical debt from being reported to credit agencies. New Jersey stands out as one of five states taking such measures.
Allison Sesso, CEO and president of Undue Medical Debt, praised New Jersey's approach: “New Jersey is a great example of a state that’s erasing medical debts weighing down its most financially burdened residents."
Andrew Gregory shared his motivation behind raising funds for this cause: “Casey and I often listened to the Stevie Wonder song Come Back as a Flower... her campaign raised $1.1 million.”
Recipients do not need to apply for relief; instead, Undue works directly with hospital systems like Atlantic Health System to purchase portfolios of past-due debts at reduced costs. Beneficiaries receive notification letters confirming their relief status.
Brunilda from Newark expressed gratitude upon receiving her letter: "I'm a single mom... Thank you so much, Governor Phil Murphy.” Angela from Dover echoed similar sentiments after losing her job due to illness: “Thank you for helping.” Antoinette from Jackson described how difficult it was managing expenses without health benefits but felt relieved by Undue's intervention.
Eligibility criteria for debt relief are based on income levels relative to federal poverty guidelines or if debts constitute 5% or more of annual income. The current effort represents an ongoing commitment by community-minded providers willing to participate in these initiatives.
Those benefiting will begin receiving notifications starting October 17th.
