Nearly 20,000 residents are included in the final round, and recipients do not need to apply or pay to receive the cancellation.
MORRISTOWN, NJ – New Jersey has announced the cancellation of $90 million in medical debt for nearly 20,000 residents, completing the ninth and final round of a program whose funding is now exhausted.
The Department of Health’s Sept. 17 announcement said the partnership with Undue Medical Debt has eliminated more than $1.6 billion in bills for nearly 900,000 New Jersey residents. The program began in 2023 with state funding and later used one-time federal American Rescue Plan funds.
Letters bearing Undue’s name began arriving during the week of the announcement. Recipients need take no action, the department said. The release did not provide a county-by-county breakdown.
Undue’s eligibility guidance describes financial-need criteria based on income at or below 400% of the federal poverty level, or medical debt exceeding 5% of income. Meeting those thresholds does not create an application-based entitlement to cancellation.
Undue explains that it acquires portfolios of debt rather than selecting individual bills at a patient’s request. Relief depends on hospitals, physicians and other holders making debts available for purchase. Someone with a qualifying income can therefore still have an outstanding bill if it was not part of a portfolio acquired by the organization.
The $90 million describes the face value of canceled bills. It should not be read as the amount the state paid to acquire them. Undue says it purchases large bundles at a fraction of their face value. The state announcement did not specify the acquisition cost of this final round.
The nonprofit also says its debt cancellation is a gift with nothing required in return.
Residents whose hospital bills remain unpaid may have a separate option through New Jersey Charity Care. The state’s program guidance describes assistance with medically necessary inpatient and outpatient services at acute care hospitals for eligible patients who are uninsured or underinsured and meet income and asset requirements.
Charity Care is not health insurance. It also does not necessarily cover separate physician, anesthesia, radiology interpretation or outpatient prescription charges. Hospitals first screen applicants for other available coverage or assistance.
Applications go to the hospital where services were provided, through its business or admissions office. Patients generally have one year from the service date to apply and must document their income and assets. The hospital determines eligibility.
The final debt-cancellation mailing and a Charity Care application are separate processes. Residents seeking help with an existing hospital bill can contact the hospital’s financial assistance office even though the funded state debt-purchase program has ended.