Murphy administration delivers $59 million in medical debt relief for 48,000 New Jersey residents
TRENTON, N.J. — Governor Phil Murphy announced Wednesday that the state, in partnership with the national nonprofit Undue Medical Debt, is delivering a fifth round of medical debt relief that will wipe out $59 million in medical bills for more than 48,000 New Jersey residents.
Using approximately $500,000 in American Rescue Plan funds, Undue purchased the debt from a mix of provider partners and secondary market sources, such as collection agencies and debt buyers. Undue-branded letters notifying recipients of the relief are expected to arrive in mailboxes in the coming days.
“Far too many New Jersey families have felt the crushing burden of medical debt, often following necessary or life-saving medical care. This debt adds up fast and can significantly impact an individual’s life and choices, even preventing them from seeking out future medical treatment,” 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. By partnering with Undue Medical Debt and implementing forward-thinking policies to prevent our residents from falling into debt, we are providing tangible relief to New Jersey families.”
The latest round of debt relief builds on Murphy’s broader efforts to make health care more affordable and accessible. Under his administration, New Jersey has implemented strong consumer protection measures, including prohibiting the credit reporting of most medical debts. The state is among the first in the nation to both ban medical debt reporting to credit agencies and allocate funding to eliminate existing medical debt directly.
“Today’s announcement marks another critical milestone in our ongoing fight against medical debt, a burden that no New Jersey family should have to bear,” said Acting Health Commissioner Jeff Brown. “With each round of debt relief, we are reinforcing our commitment that health care is a right, not a privilege reserved for those who can afford it. Medical debt doesn’t just drain bank accounts, it forces impossible choices between prescriptions and groceries, between doctor visits and rent. By eliminating this debt, we’re helping to restore financial stability to New Jersey families, while demanding a new status quo where getting needed health care doesn’t carry the fear of financial ruin.”
Undue Medical Debt CEO and president Allison Sesso praised New Jersey’s continued leadership in medical debt relief. “I’m very proud to see New Jersey reach this remarkable milestone of over $1.3 billion in medical debt erased for New Jersey residents,” Sesso said. “This fifth round of relief demonstrates New Jersey’s unwavering commitment to protecting families from the financial and emotional burden of medical debt. I’m also grateful for the continued partnership of providers who recognize that removing these unpayable debts helps their communities thrive. No one chooses to get sick, be in an accident or have a chronic illness. We’re thrilled that tens of thousands more people will soon be receiving this good news in the mail.”
There is no application process for the relief. Undue purchases large portfolios of past-due medical debt for pennies or less on the dollar and eliminates the debt rather than collecting it. Those who qualify typically have medical debt equal to at least 5% of their annual income or earn less than 400% of the federal poverty line.
Recipients will receive notification directly from Undue Medical Debt in the mail.
