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Governor Phil Murphy has announced a third round of medical debt elimination, benefiting over 20,000 residents with a total of $26 million in debt relief. This initiative is part of a partnership with the national non-profit, Undue Medical Debt, which has already helped eliminate $246 million in medical debt for 147,000 New Jersey residents.
The latest round of debt relief will erase an average of $1,300 in medical bills per person. The state allocated $270,000 in federal funds from the American Rescue Plan to achieve this goal. According to NorthJersey.com, those eligible for relief are individuals below 400% of the federal poverty line or those with medical debts exceeding 5% of their annual income.
Governor Murphy emphasized the importance of focusing on health rather than financial burdens, stating, "New Jerseyans should not have to scrimp and save to ensure their basic health care needs are met." The initiative aims to make healthcare more affordable and accessible for all residents.
This announcement follows previous rounds of debt relief, where $100 million in debt was wiped out for 50,000 patients of Prime Healthcare hospitals, and $120 million was eliminated for 77,000 patients through partnerships with Atlantic Health System and other providers. Governor Murphy continues to advocate for consumer protection policies, including the Louisa Carman Medical Debt Relief Act, which prohibits the reporting of medical debt to credit agencies.
The state's partnership with Undue Medical Debt has been instrumental in identifying and purchasing large portfolios of past-due medical debt, erasing it instead of collecting it. This effort is part of a broader strategy to relieve financial constraints and ensure quality healthcare is accessible to all New Jersey residents.