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Thousands of New Jerseyans Set to Have Medical Debt Eliminated; Announced Governor Murphy
By TAPinto Staff,
2 days ago
Credits: TAPinto.net File Photo
TRENTON – Thousands of eligible individuals and families across New Jersey are set to have some or all of their medical debt eliminated as part of a major initiative to make health care more affordable and accessible, announced Governor Phil Murphy. By leveraging over $550 thousand in American Rescue Plan funds and partnering with Undue Medical Debt (Undue), the administration is delivering relief to 17,905 New Jersey residents who had 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, said the governor's office.
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.”
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 one of only five states in the nation that both prohibits medical debt reporting to credit agencies and has allocated funding to provide residents with direct medical debt relief.
There is no application process for medical debt relief. Undue works with hospital systems across the country to purchase large, bundled portfolios of past-due medical debt belonging to those least able to pay. Instead of trying to collect, Undue erases the debt.
“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.”
Those who qualify for medical debt relief are either four times or below the federal poverty level or have medical debts that equal 5% or more of their annual income, according to the governor's office. These are the only criteria for relief. Undue has worked with Prime Healthcare and other New Jersey-based health care providers to identify unpaid medical debts that qualify for erasure.
This is a one-time abolishment to help remove the financial and emotional burden of unpayable medical debts. Medical debt relief is source-based, depending on community-minded providers like hospitals who choose to engage, and it cannot be requested.
Those benefiting from medical debt relief will receive an Undue branded letter in the mail beginning Monday, August 19, 2024. Learn more about Undue here .
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