Gov. Phil Murphy announced Jan. 31 his administration will launch a third round of medical debt elimination that would benefit over 20,000 New Jerseyans.

The initiative is facilitated through a partnership with Undue Medical Debt. It leverages nearly $270,000 in American Rescue Plan funds toward medical debt abolishment. Undue purchases the debt from the secondary market.

NJBIZ has previously reported on this effort. So far, it has eliminated $246 million in medical debt for 147,000 New Jersey residents.

Those who qualify are either at or below 400% of the federal poverty line, or have medical debts equal to 5% or more of their annual income.

Officials say there is no application process for the relief. Those impacted will receive letters in the mail, which should arrive within the next week.

Putting health first

In a press release announcing the action, Murphy noted medical debt accumulates fast – and can be just as debilitating as any diagnosis or injury.

“It is unacceptable that the threat of taking on debt could be what discourages people from seeking necessary, life-saving care,” said Murphy. “That is why in New Jersey, we are working to make health care more affordable and accessible – so our residents can be put their health and well-being first.

“Our partnership with Undue Medical Debt, which has already seen over $246 million in debt owed by New Jerseyans retired, complements our administration’s cross-agency efforts to put health care in reach for all New Jersey families,” Murphy continued.

“This wave of medical debt relief builds on positive momentum in the State of New Jersey to unburden residents from millions of dollars in unpayable medical debt,” said Undue Medical Debt CEO and President Allison Sesso. “Debt sourced from the secondary market is often from physicians’ groups and collection agencies, meaning this relief will be complimentary to the medical debts recently erased in partnership with the Atlantic Health hospital system.”

“These debt-relief efforts increase economic security, making all New Jerseyans better off,” said Health Commissioner Dr. Kaitlan Baston. “I’m proud of New Jersey and the Murphy administration for working to wipe out medical debt. And I look forward to continuing the work of the Office of Health Care Affordability and Transparency through the Department of Health.”

“We look forward to the continued success of this program and helping families make ends meet and access necessary health care,” said Sesso.

“Today’s announcement underscores this continued commitment to create a better, more affordable, and accessible health care system in our state,” said Murphy.

In case you missed it:

Hospitals within the Hackensack Meridian Health system will soon no longer be considered as in-network providers by Horizon Blue Cross Blue Shield of New Jersey. Get the details here.