New Jersey teams with nonprofit to wipe out medical debt for 50,000 residents
Those who qualify for this debt relief have already been chosen. The governor’s office says letters started arriving on Monday at homes throughout New Jersey.
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Gov. Phil Murphy says he’s wiping the slate clean for 50,000 New Jersey residents who are struggling under medical debt.
Murphy announced the state is teaming up with a nonprofit called Undue Medical Debt to help get it done.
Those who qualify for this debt relief have already been chosen. The governor’s office says letters started arriving on Monday at homes throughout New Jersey.
Those who qualify are New Jersey residents living below the federal poverty line or those with medical debt that is 5% or more of their annual income.
“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,” Murphy said.
“We hope the tens of thousands of recipients in this first wave of medical debt relief are encouraged to re-engage with the healthcare system and feel both financial and emotional relief,” said Allison Sesso, president of Undue Medical Debt.
This is notable because New Jersey Citizen Action says medical debt prevents one out of three people from going to a hospital or doctor because they may gain more debt.
Laura Waddell is with New Jersey Citizen Action.
“Medical debt is different from other debt in that it is involuntary,” Waddell said. “About 1.5 million New Jerseyans are struggling with medical debt.”
Waddell says she appreciates the one-time relief effort but reminds us that policies are needed to prevent debt from occurring.
“Those are measures that’ll increase the affordability of health care,” Waddell said.
This program comes after the Louisa Carman Medical Debt Relief Act was signed in July. It protects people from debt collectors and reporting of medical debt to credit agencies.
