OAN Staff James Meyers
1:30 PM – Wednesday, August 21, 2024
Democrat New Jersey Governor Phil Murphy announced on Wednesday that the state will cancel $100 million in medical debt for almost 50,000 New Jersey residents.
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“Medical debt can follow someone for decades. We are wiping the slate clean for thousands and making a real impact on their lives,” Murphy posted on X.
The Garden State is working with the nonprofit Undue Medical Debt, which claimed in a statement that it was working with the state to garner over $550,000 in American Rescue Plan federal funds.
Almost 18,000 New Jersey residents owed $61.6 million to Prime Healthcare hospitals, and over 31,000 people owed more than $38.4 million to other providers like collection agencies, according to the nonprofit organization.
“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,” Murphy said in a statement.
The announcement comes after the New Jersey governor last month signed the Louisa Carman Medical Debt Relief Act, which safeguards residents from accruing more medical debt and protects them from “predatory medical debt collectors.”
Undue Medical Debt stated there is no application process for the debt relief. The nonprofit will work with hospitals across the country to purchase overdue medical debt.
The people who qualify for Undue’s medical debt relief plan have to be four times below the federal poverty level or have medical debt that equals 5% or more of their annual income, according to the nonprofit.
For those who qualify they will receive a letter from Undue Medical Debt in the mail starting the week of August 19th.
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