In the final weeks of his administration, Governor Phil Murphy announced that over 53,000 New Jerseyans will see a combined $86 million eliminated as a result of the State’s partnership with nonprofit Undue Medical Debt. The partnership has eliminated nearly $1.4 billion in medical debt for over 828,000 Garden State residents since its inception.
“With nearly $1.4 billion in medical debt abolished for hundreds of thousands of New Jersey residents, we are making a real, tangible impact and alleviating the burden of unpayable medical bills for our residents. Our partnership with Undue Medical Debt continues to build on my Administration’s efforts to create a more affordable and accessible health care system for all New Jerseyans,” said Governor Murphy. “Nobody should have to delay life-saving care because they fear the crushing burden of medical debt or cut corners to ensure their basic health care needs are met.”
The medical debt relief builds upon Gov. Murphy’s efforts to make healthcare more affordable and accessible to New Jersey. The administration has also made advancements in protecting New Jerseyans from falling into medical debt. This includes the prohibition of credit reporting for most medical debts, which falls under the Louisa Carman Medical Debt Relief Act.
“With today’s announcement, we are alleviating more than $86 million in burdensome medical debt from tens of thousands of New Jerseyans, providing direct relief to our communities as we work toward a better, more affordable health care system,” said James Lloyd, Director of the Office of Health Care Affordability and Transparency. “Our partnership with Undue Medical Debt has provided direct help to many vulnerable New Jerseyans, and is a vital piece of the State’s larger efforts to address the crisis of medical debt among our residents.”
New Jersey is one of the top states when it comes to consumer protection policies, reflecting widespread support from the general public on the topic. The efforts are paired with additional policies that promote prescription drug affordability, transparency among the pharmaceutical industry and oversight of pharmaceutical benefits management companies. The partnership with Undue Medical Debt has only solidified the State’s efforts to protect New Jersey residents.
“I’m thrilled to see New Jersey reach this historic milestone of nearly $1.4 billion in medical debt erased for over 822,000 residents,” said Undue Medical Debt CEO and president Allison Sesso. “At a time when the medical debt crisis is on track to get even worse, New Jersey stands as a national leader — not only providing direct relief, but also enacting critical protections like prohibiting medical debt from appearing on credit reports. No one chooses to get sick, be in an accident, or have a chronic illness, and I’m grateful for the provider partners who continue working with us to ensure medical debt doesn’t prevent people from seeking the care they need. We’re proud that tens of thousands more families will soon receive this welcome news in the mail.”
There is no application process for medical debt relief, as it applies to those who are either below 400% of the federal poverty line or have medical debts that equal 5% or more of their annual income. As Gov. Murphy’s tenure comes to an end, his efforts to make health care affordable and accessible have helped hundreds of thousands of residents over the years.