After issuing its eighth and final round of relief letters, New Jersey has abolished nearly $1.6 billion in medical debt in partnership with Undue Medical Debt.
Starting with a $10 million grant in 2024, New Jersey has now eliminated medical debt for more than 907,500 state residents, according to a Jan. 20 news release from Undue.
In the final round of debt relief, the state eliminated about $100 million for 60,000 New Jersey residents, utilizing $1 million in American Rescue Plan funds, according to the release. Undue purchased the debt from an unnamed major New Jersey health system.
Undue purchases large portfolios of past-due medical debt from providers for pennies on the dollar and then uses donor funds to forgive the debt. There is no application process for medical debt relief. There is no application process; debt is purchased in bulk and forgiven for eligible residents. To qualify, individuals must earn at or below 400% of the federal poverty level or hold medical debt totaling at least 5% of their annual income.
“The return on our investment in medical debt relief has been remarkable,” New Jersey Gov. Phil Murphy said in the release. “For hundreds of thousands of families across our state, this initiative has brought about transformational change, wiping the slate clean and eliminating their medical debt. The positive impact is clear; without medical debt, residents are more inclined to seek care when they need it.”
