New Jersey to Forgive Medical Debt for 50,000 Residents

In a move that could lift a huge financial burden, Governor Phil Murphy has announced that the state will forgive the medical debt of 50,000 New Jersey residents. Are you one of them?

I don't know about you but I'm sitting on a couple thousand dollars of medical bills from hospital stays, procedures, and tests that weren't fully covered by my insurance. I make payments the best I can but they're a burden.

So, my jaw dropped Monday when I heard that New Jersey would allocate funds from the federal American Rescue Plan to clear $100 million in medical debt for state residents.

New Jersey to Wipe Out $100M in Medical Bills for State Residents

According to Patch.com, the Garden State will be the first in the country to implement this kind of debt relief.

Also recently signed into law in New Jersey is the Louisa Carman Medical Debt Relief Act which, in part, prevents medical institutions from reporting a patient's overdue bills to creditors.

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How to Find Out if You Qualify for NJ's New Medical Debt Forgiveness Program

Not everyone living in New Jersey with medical debt will have it forgiven. There are qualifications.

Eligible residents have to be currently earning at minimum four times BELOW the federal poverty level or be in a situation where their medical debt equates to five percent or more of their annual income, Patch.com reports.

There is no enrollment into the program necessary. Those who qualify for the relief will receive correspondence by mail (as early as this week) from the non-profit organization Undue Medical Debt that some or all of their medical debt has disappeared.

In the meantime, you can find out more about the program at unduemedicaldebt.org.