NEW YORK (1010 WINS/ WCBS 880) – Mayor Eric Adams announced a medical debt relief program on Monday that aims to relieve over $2 billion in medical debt for eligible New Yorkers.
The city is investing $18 million over the next three years to help working-class New Yorkers by clearing their medical debt. This one-time program aims to clear the debts of up to 500,000 people in the city.
“Getting health care shouldn’t be a burden that weighs on New Yorkers and their families,” Adams said. “No one chooses to go into medical debt — if you're sick or injured, you need to seek care. But no New Yorker should have to choose between paying rent or for other essentials and paying off their medical debt, which is why we are proud to bring this relief to families across the five boroughs, as we continue to fight on behalf of working-class New Yorkers.”
Over 100 million Americans hold some medical debt, totaling more than $195 billion nationwide, according to City officials. Black and Latino communities are more likely to have medical debt, with rates 50 percent and 35 percent higher than white communities, respectively.
“Throughout my career as a doctor, I have seen first-hand how high health care costs and medical debt can force patients to make impossible choices,” said the city's health commissioner, Dr. Ashwin Vasan. “No one in New York City, or in America, in 2024, should have to choose between getting the health care they need and paying their rent or buying food to feed their families. As a physician and advocate, I know medical debt is killing New Yorkers and killing our economy, and today, this city is stepping up to say that the people deserve better.”
Adams is working with RIP Medical Debt, a nonprofit organization, for the program and to buy and clear medical debts from hospitals and health care providers in New York City.
New Yorkers whose debts are cleared will be informed directly, and they don't need to apply for this help. This unique program, the biggest of its kind run by a city, according to Adams, will start in early 2024 and last for three years.
According to the release, RIP Medical Debt will purchase medical debt portfolios from providers to then abolish that debt at pennies on the dollar.
Debt relief recipients will then be notified that their debt has been bought by a third party and erased, with no strings attached.
Recipients owe nothing on the debt and face no tax penalty. To qualify for the announced debt relief, individuals must meet one of two criteria: either their annual household income is at or below 400 percent of the Federal Poverty Line, or their medical debt equals or exceeds 5 percent of their annual household income.
New Yorkers interested in helping relieve medical debt can donate online.