The Office of Healthcare Affordability and Transparency (OHCAT), which is part of the New Jersey Department of Health (NJDOH), recently announced that through a partnership with nonprofit Undue Medical Debt, the State will be delivering a ninth and final round of medical debt relief. This will affect around 20,000 New Jersey residents who owe a combined $90 in medical bills. As a whole, the partnership has resulted in the elimination of over $1.6 billion in medical debt for nearly 900,000 residents.
“Across the country and here in New Jersey, families are struggling to stay afloat as rising healthcare costs force too many people to choose between seeing a doctor, filling a prescription, and paying for everyday necessities,” said Governor Mikie Sherrill. “While the federal government is cutting access to affordable healthcare, my Administration is focused on ensuring our communities can access the best possible care without fear of collecting mountains of medical debt. We will continue fighting to lower costs, protect coverage, and make high-quality healthcare more accessible and affordable for New Jersey families.”
New Jersey’s medical debt abolishment program partnered with Undue to purchase the qualifying debt from healthcare providers. It was funded through an initial state investment that was expanded upon with one-time federal American Rescue Plan Funds. Now that all funds have been used, the debt elimination program, which was launched in 2023, is now finished. Though the program has come to a conclusion, the State of New Jersey is still focusing on making healthcare costs more bearable for New Jerseyans.
“It has been exciting to see the impact that these funds have had on New Jerseyans burdened with medical debt,” said James Lloyd, Director of the Office of Healthcare Affordability and Transparency. “Relief from debt can be critically important for those families who receive it, and we have to work together to make care more affordable for everyone.”
In 2024, roughly 1 in every 7 New Jerseyans lived in families whose out-of-pocket healthcare spending was more than 10% of their annual income. Medical debt often hits those the hardest that are in the most vulnerable position to deal with them. Those who qualified for the medical debt relief fit into one of either two criteria, which were being at or below 400% of the federal poverty line or having medical debts that were equal to 5% or more of their annual income. Despite the program coming to an end, New Jersey plans to continue fighting for increased healthcare accessibility and affordability.