Nearly 20,000 New Jersey residents will have $90 million in medical debt erased in the final round of a state program that has relieved more than $1.6 billion.
WEBDESK – NJNEWSLINE
TRENTON, N.J. — Nearly 20,000 New Jersey residents will have a combined $90 million in medical debt eliminated in the ninth and final round of a state-backed relief program, the New Jersey Department of Health announced Sept. 17.
The latest round brings the total medical debt retired through the program to more than $1.6 billion for nearly 900,000 New Jersey residents, according to the state.
The initiative is operated by the state’s Office of Healthcare Affordability and Transparency in partnership with Undue Medical Debt, a national nonprofit organization. The program purchases qualifying unpaid medical debt from health care providers and abolishes it rather than requiring recipients to repay the balances.
The program, launched in 2023, was initially supported by state funding and later expanded with one-time federal American Rescue Plan funds. The latest round uses the remaining funds, bringing the initiative to an end.
Who qualifies for relief?
Residents receiving the latest relief do not need to apply or take any action. Undue Medical Debt-branded letters began arriving in the mail this week, according to the New Jersey Department of Health.
Under the program’s criteria, qualifying medical debt was either held by people whose household income was at or below 400% of the federal poverty level, or by individuals whose medical debt represented at least 5% of their annual income.
The state said the debt relief is based on qualifying debt identified through participating providers and other partners, meaning residents cannot directly request that specific debts be included.
Final round brings program to $1.6 billion
The latest $90 million round follows several previous rounds of debt relief across New Jersey.
State officials said the program has now retired more than $1.6 billion in qualifying medical debt affecting almost 900,000 residents since its launch.
The Department of Health said its work on health care affordability will continue even though the debt-abatement program has ended. Its Office of Healthcare Affordability and Transparency is examining the factors driving health care costs, with the department saying its research has identified rising prices rather than utilization as the primary driver of cost growth in New Jersey.
The state is also using Rural Health Transformation Program funding for health care access and affordability initiatives in rural communities. Other efforts include preventive-care outreach and funding for programs serving residents who cannot afford health care.
The Fiscal Year 2027 budget signed by Gov. Mikie Sherrill includes $83.9 million in state and federal funding for Charity Care and $39 million for the Uncompensated Care Fund, according to the Department of Health.
For residents receiving the latest debt relief, the immediate impact is straightforward: the qualifying medical balances covered by the program will no longer have to be paid.
The state said the final round marks the completion of the medical debt elimination program after nearly four years of relief efforts.
