New Jersey Gov. Phil Murphy on Aug. 20 announced that thousands of eligible individuals and families in the state will have some or all of their medical debt eliminated as part of an initiative to make healthcare more affordable and accessible.
The state has partnered with Undue Medical Debt to provide 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 collections agencies.
Ontario, Calif.-based Prime partnered with Undue to sell qualifying, unpayable medical debts for relief. Undue works with health systems to buy large, bundled portfolios of past-due medical debt belonging to those least able to pay. Undue erases the debt instead of trying to collect.
Those benefiting from medical debt relief will receive a letter from Undue in the mail beginning Aug. 19, 2024. There is no application process for medical debt relief.
"We are thrilled to join into this partnership which furthers our mission of 'Saving Hospitals, Saving Jobs, Saving Lives,'" Sonia Mehta, MD, CEO Region II, corporate chief medical officer and chief academic officer for Prime, said. "We commend Gov. Murphy's leadership and are proud to team up with Undue Medical Debt on this initiative that will relieve crippling medical debt for so many patients."
This news comes shortly after the signing of the Louisa Carman Medical Debt Relief Act, which protects New Jersey families against predatory medical debt collectors and prohibits the reporting of medical debt to credit reporting agencies.
"Medical debt accumulates very quickly and can follow a person for decades," Mr. Murphy said. "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."