New Jersey has wiped out $90 million in medical debt owed by about 20,000 residents. The nonprofit Undue Medical Debt bought the debt from hospitals and collection agencies and then canceled it. Notification letters bearing the Undue logo have been mailed to eligible residents starting the week of Sept. 17. Residents do not need to apply or pay anything. This is the final round of the program, which began in 2023 and has erased a cumulative $1.6 billion in debt for about 900,000 people.
The New Jersey Department of Health announced on Sept. 17 that it has erased $90 million in medical debt owed by about 20,000 residents. Using state funds and money from the federal American Rescue Plan Act (ARPA), the nonprofit Undue Medical Debt bought overdue medical debt from hospitals and collection agencies at a steep discount and then canceled it outright. The program, which began in 2023, has now run out of funding, and this is its final round.
Eligible residents are those whose household income is at or below 400% of the federal poverty line, or whose medical debt is 5% or more of their annual income. For a household of four, an annual income of roughly $130,000 or less meets the income requirement. However, residents cannot apply on their own. Debt is canceled only if it was included in the portfolios Undue purchased. The hospitals and collection agencies that took part have not been disclosed.
A Letter With the 'Undue' Logo Means It's Done; Any Demand for an Application or Payment Is Likely a Scam
Letters bearing the 'Undue' logo are being mailed to eligible residents starting the week of Sept. 17. Anyone who receives one has already had the medical debt erased and has nothing further to do. Conversely, any call or text message that asks you to pay a fee to receive relief, or that requests your card or bank account information, has nothing to do with this program. The state Department of Health said, "There is nothing eligible residents need to do."
Including this round, more than $1.6 billion in medical debt has been erased for about 900,000 people in New Jersey. Many Korean American families have had emergency room or surgery bills from a period when they were uninsured sent to collections, so it may be worth checking any recent letters in your mailbox. The program was carried out by the Department of Health and the Office of Health Care Affordability and Transparency, together with Undue.
Gov. Mikie Sherrill said, "We will keep fighting to lower costs, protect health coverage and make quality care accessible to everyone." Although this program has ended, New Jersey hospitals operate charity care programs for lower-income patients. If you have received a hospital bill, you can ask the hospital's financial counseling office whether you qualify. For inquiries, contact the Department of Health's press office at 609-984-7160.