GOVERNOR MURPHY ANNOUNCES ELIMINATION OF $100 MILLION IN MEDICAL DEBT FOR ALMOST 50,000 NEW JERSEYANS 

Governor Phil Murphy announced that thousands of eligible individuals and families across New Jersey are set to have some or all of their medical debt eliminated as part of a major initiative to make health care more affordable and accessible.

By leveraging over $550 thousand in American Rescue Plan funds and partnering with Undue Medical Debt (Undue), the administration is delivering relief to 17,905 New Jersey residents who had owed $61.6 million to Prime Healthcare hospitals and an additional 31,748 residents owing more than $38.4 million to other providers through the secondary debt market, primarily collections agencies. Prime Healthcare partnered with Undue to sell qualifying, unpayable medical debts for relief.

“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,” said Governor Murphy. 

“Medical debt accumulates very quickly and can follow a person for decades. 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. Today’s announcement continues our momentum in creating a better, more affordable, and accessible health care system for all New Jersey residents.”

This announcement follows the signing of the Louisa Carman Medical Debt Relief Act, which safeguards New Jersey families from accumulating medical debt, protects against predatory medical debt collectors, and prohibits the reporting of medical debt to credit reporting agencies.

New Jersey is a leading state in consumer protection policies and supports for residents, being one of only five states in the nation that both prohibits medical debt reporting to credit agencies and has allocated funding to provide residents with direct medical debt relief.