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Gov. Phil Murphy announced Oct. 15 a second round of medical debt abolishment for some 77,000 New Jerseyans. The move will eliminate $120 million in medical debt.

It marks the second such action taken through a state partnership with Undue Medical Debt. The organization worked with Atlantic Health System to identify and purchase qualifying, unpayable medical debts.

Undue works with hospital systems nationwide to purchase large, bundled portfolios of past-due medical debt belonging to those least able to pay – for pennies on the dollar. Then, it erases the debt. As NJBIZ reported in August, the state’s first round eliminated $100 million for nearly 50,000 residents. With Tuesday’s announcement, the program has eliminated $220 million in medical debt for 127,000 New Jersey residents.

Particulars of this initiative include:

• Qualifying residents are either four times or below the federal poverty level, or have medical debts that equal 5% or more of their annual income (the only criteria for relief);
• The one-time abolishment helps remove financial and emotional burdens;
• Benefactors will receive an Undue branded letter in the mail, beginning Oct. 17.

Murphy discussed the announcement with Andrew Rose Gregory, a special guest at the 2024 State of the State. Gregory partnered with Undue following the passing of his wife, Casey, to raise $1.1 million to help eliminate medical debt for others. Altogether the efforts forgave almost $45 million, with at least $65 million more unpayable medical debt still slated for relief.

“As Casey and I prepared for her to die in home hospice, we decided that after her death we would raise money to forgive others’ medical debt in her honor,” said Andrew Gregory. “We were keenly aware of how lucky we were that our finances hadn’t been demolished by America’s health care system during Casey’s long and arduous treatment. Casey’s corporate insurance through her work as a publisher at Penguin Random House had been our shield. But we had met so many other patients and families that were not so lucky as us and had gone into debt or even denied care because of a lack of insurance.”

Proud partners

Murphy said investing in affordable and accessible health care allows residents to prioritize their well-being without having to take on the significant burdens of medical debt.

“Which has long served as a debilitating barrier to receiving the life-saving care and services they deserve,” said Murphy. “That is why our administration has taken action to both protect residents from accumulating debt and eliminate existing debt so that New Jerseyans can focus on what matters most: their health. Today’s announcement marks a monumental step forward and builds upon our efforts to create a health care system that relieves financial constraints and ensures quality, comprehensive care is within reach of every New Jerseyan.”

“We’re proud to partner with the State of New Jersey, Gov. Murphy and Atlantic Health on this impactful medical debt abolishment follows closely on the heels of the initial $100 million of medical debt already erased,” said Undue Medical Debt CEO and President Allison Sesso. “New Jersey is a great example of a state that’s erasing medical debts weighing down its most financially burdened residents while also taking legislative action to lessen the burden of medical debt overall.”