NJ Gov. Phil Murphy announces major $100M medical debt relief

NEW JERSEY - NJ Gov. Phil Murphy announced he is eliminating $100 million in medical debt for almost 50,000 New Jersey residents.

"Medical debt can follow someone for decades. We are wiping the slate clean for thousands and making a real impact on their lives," Murphy said in a post on X.

Murphy will use $550,000 in American Rescue Plan funds to pay off medical debt, including 17,905 New Jersey residents who owe over $61 million to just one healthcare provider, Prime Healthcare. 

"When someone is sick or injured, they should be able to focus on what matters most – getting better – rather than worrying about how they will pay for the life-saving care and services rendered to them. New Jerseyans should not have to scrimp and save to ensure their basic health care needs are met, or to pay down lofty medical debts resulting from tragic accidents or devastating diagnoses," Murphys said. 

Murphy's office stated that an additional $38.4 million in debt will be forgiven for 31,748 individuals who owe money to secondary debt collectors and other providers.

"With this strategic investment and our partnership with Undue, we are wiping the slate clean for thousands of New Jersey families, eliminating their debt, and making a real, tangible impact on their lives," Murphy said.

Is there an application process?

No application process for medical debt relief is needed. 

Who is qualified? 

The people that qualify are either four times or below the federal poverty level or have medical debts that equal 5% or more of their annual income, Murphy's office said.

Those who are qualified will receive a letter in the mail from Undue. 

For more information about Undue, click here.