Final medical debt relief round clears $90 million for nearly 20,000 N.J. residents
State health officials say notices are arriving by mail and recipients need not apply; the funding for this program is exhausted.
Nearly 20,000 New Jersey residents are receiving relief from a combined $90 million in medical debt in the ninth and final round of a state partnership with the nonprofit Undue Medical Debt. The Department of Health announced the round September 17 and said notices bearing Undue’s name began arriving that week. People covered by the relief do not have to take action to receive it.
The program purchased qualifying medical debt from participating health care providers and other holders, then abolished the balances. The state says the partnership has retired more than $1.6 billion in debt for nearly 900,000 residents over its lifetime. Those figures describe the face value of the debts eliminated, not the price the state paid to acquire them. The effort began with state funding and expanded using one-time federal American Rescue Plan money.
Eligibility was based on either a household income at or below 400 percent of the federal poverty line or medical debt equal to at least 5 percent of annual income. Relief is tied to particular debt portfolios sold by providers and other partners. It cannot be requested through an individual application, so meeting an income threshold does not mean every outstanding medical bill has been cancelled. Anyone receiving a letter should identify the specific accounts it covers and keep the notice with their records.
Health officials say the allocated money has now been spent and the debt elimination program launched in 2023 is complete. They also acknowledge that canceling old bills does not solve the cost of future care. The department says its Office of Healthcare Affordability and Transparency continues to study the drivers of rising medical costs, while other state programs support preventive care and safety-net services.
For residents, an Undue notice confirms relief for the debts identified in that communication; it is not a promise that other bills will disappear. The state’s September announcement reports a completed funding round, and further eligibility or funding would require a new program decision.