Today, Gov. Phil Murphy announced an additional 629,000 New Jersey residents will see a combined $927 million in medical debt retired through the state’s partnership with Undue Medical Debt, bringing total forgiven debt to over $1.1 billion for 776,000 New Jerseyans since August 2024.
By leveraging approximately $5.8 million in American Rescue Plan funds from the state’s investment in medical debt abolishment, Undue has purchased this fourth round of medical debt from RWJBarnabas Health — the state’s largest integrated academic health system — and from the secondary debt market. More than half a million households will receive an Undue Medical Debt-branded letter in the mail over the coming weeks informing them that some or all their medical debt has been abolished.
“Nobody should have to choose between their health and their financial stability,” said Gov. Murphy. “My administration has pursued lasting systemic reforms to put more affordable health care in reach for New Jersey families and better protect our residents from accumulating debt.
“Meanwhile, our work with Undue Medical Debt has provided tangible relief to hundreds of thousands of New Jersey families, retiring over $1 billion in medical debt,” he added. “I am grateful to our partners in this space, and I look forward to continuing our work to build a healthier, more affordable New Jersey.”
“Medical debt is a silent crisis affecting millions of families, exacerbating health disparities and preventing far too many people from seeking the care they need. Debt relief efforts are essential not only for financial recovery, but for the well-being of our communities,” said New Jersey Department of Health Commissioner Kaitlan Baston, MD, MSC, DFASAM.
“Health care should never be dictated by someone’s ability to pay. By addressing medical debt, we empower individuals to focus on their health and future rather than the burden of financial insecurity. Today’s announcement is a massive win and a testament to the Murphy Administration’s commitment to making health care more affordable and accessible for New Jersey’s residents.”
“I’m very proud that we’ve helped the State and Gov. Murphy reach this momentous milestone of over $1 billion of medical debt erased for New Jersey residents,” said Undue Medical Debt CEO and President Allison Sesso. “I also must thank RWJBarnabas Health for their partnership and all the providers that have stepped up to help us remove these unpayable burdens on families. I’m thrilled for the hundreds of thousands of people who will soon be receiving this good news in the mail.”
