$120 Million in Medical Debt Relief for 77,000 New Jersey Residents

State partnership with Undue Medical Debt continues to reduce financial burdens, reaching $220 million in relief to date

TRENTON, NJ – Nearly two months after launching the first phase of medical debt relief, Governor Phil Murphy has announced the elimination of an additional $120 million in medical debt, benefiting 77,000 individuals and families across New Jersey. This milestone, achieved through the state’s ongoing partnership with Undue Medical Debt, reflects the Governor’s commitment to making health care more accessible and affordable.

Governor Murphy discussed the initiative with Andrew Rose Gregory, a key advocate featured at the 2024 State of the State Address. Gregory and his late wife, Casey, raised $1.1 million with Undue following her passing to support others facing unmanageable medical debt.

“As Casey and I prepared for her to die in home hospice, we decided that after her death we would raise money to forgive others' medical debt in her honor. We were keenly aware of how lucky we were that our finances hadn't been demolished by America's health care system during Casey's long and arduous treatment. Casey's corporate insurance through her work as a publisher at Penguin Random House had been our shield. But we had met so many other patients and families that were not so lucky as us, and had gone into debt or even denied care because of a lack of insurance,” said Andrew Gregory. “In the last weeks of her life, Casey and I often listened to the Stevie Wonder song Come Back as a Flower: I wish that I could come back as a flower / as a flower / to spread the sweetness of love. As news of Casey's death, and her wish to forgive others' medical debt, spread across the world after she died, her campaign raised $1.1 million, forgiving almost $45 million with at least $65 million more of un-payable medical debt still slated to be relieved. She is no longer with us but I still say to her, Casey, Casey, you have come back as a flower."

"Investing in affordable and accessible health care allows residents to prioritize their well-being without having to take on the significant burdens of medical debt, which has long served as a debilitating barrier to receiving the life-saving care and services they deserve," said Governor Murphy.

$220 Million in Total Relief to Date

With this latest round of relief, New Jersey has now abolished $220 million in medical debt for 127,000 residents. The program leverages $900,000 from the American Rescue Plan to work with partners like Atlantic Health System, which identified and bundled unpayable debts for this effort.

Medical debt relief is automatic and requires no application. Undue collaborates with hospital systems to purchase past-due medical debt for pennies on the dollar. Rather than collecting the debt, Undue erases it entirely, relieving recipients of both the financial and emotional burdens.

“Today’s announcement is lifting the burden of $120 million in debt off their shoulders, helping to bring some peace of mind and comfort next time they have to see a doctor or visit the hospital for care," said Shabnam Salih, Director of the Office of Health Care Affordability and Transparency.

Eligibility and Upcoming Notifications

Relief recipients either have medical debt exceeding 5% of their annual income or earn four times or less than the federal poverty level. Letters notifying eligible individuals of the debt cancellation will begin arriving on Thursday, October 17, 2024, with Undue’s branded messaging.

“We’re proud to partner with the state of New Jersey, Governor Murphy and Atlantic Health on this impactful medical debt abolishment that follows closely on the heels of the initial $100 million of medical debt already erased,” said Undue Medical Debt CEO and president Allison Sesso. “New Jersey is a great example of a state that’s erasing medical debts weighing down its most financially burdened residents while also taking legislative action to lessen the burden of medical debt overall."

New Consumer Protections Under State Law

Earlier this year, Governor Murphy signed the Louisa Carman Medical Debt Relief Act, further shielding New Jersey residents from the pressures of medical debt. The law protects families from predatory debt collectors, prohibits medical debt reporting to credit agencies, and prevents future debt accumulation.

New Jersey is one of only five states to both ban medical debt reporting to credit bureaus and allocate funding for direct debt relief, making it a leader in consumer protection.

For more information, residents are encouraged to monitor their mail for communications from Undue. Through the combined efforts of state partnerships and philanthropic initiatives, the program continues to reduce financial hardships and improve the well-being of thousands of New Jersey families.