NJ gov. erases $100 million in medical debt for residents

NEW JERSEY (PIX11) – Nearly 50,000 New Jersey residents will soon have their medical debt forgiven, Gov. Phil Murphy announced Tuesday.

Murphy will forgive a total of $100 million of medical debt owed to Prime Healthcare hospitals and other providers, according to Murphy’s office.

The Governor will use $550,000 in federal funds to pay off the medical debt, including 17,905 New Jersey residents who owe over $61 million to just one healthcare provider, Prime Healthcare.

Another $38.4 million in debt will be absolved for 31,748 who owe money to secondary debt collectors and other providers, according to Murphy’s office.

“Medical debt accumulates very quickly and can follow a person for decades,” Murphy said. “We are wiping the slate clean for thousands of New Jersey families, eliminating their debt, and making a real, tangible impact on their lives.”

Residents below the federal poverty level or who have debt worth 5% or more of their annual income will qualify for debt relief. Those selected started receiving letters Monday from Undue Medical Debt, a nonprofit facilitating the process.

Emily Rahhal is a digital reporter from Los Angeles who has covered New York City since 2023. She joined PIX11 in 2024. See more of her work here and follow her on Twitter here .

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