"The move will relieve some or all of the medical debt for 500,000 New Yorkers on a one-time basis. It is part of a program Adams launched last year with Undue Medical Debt, a nonprofit that buys medical debt to acquire debt portfolios from healthcare providers, hospitals, and collection agencies. Since the program launched in 2024, it has thus far canceled $135 million in medical debt for 75,000 New Yorkers."
"There is no application process for the program. The nonprofit purchases a bundle of qualifying medical debt at pennies on the dollar, the mayor's office explained. Debt relief recipients will then be notified that their debt has been bought by a third party and erased, the mayor's office said, adding that recipients will owe nothing on the debt and face no tax penalty."
"For too long, and for too many, medical debt has not only been a barrier for those looking to get the health care they need, but also a major financial and emotional stressor for families through no fault of their own, the mayor said. Working-class New Yorkers shouldn't have to live in fear that getting sick will break their bank, and, thanks to our administration, they won't have to."
An $18 million city investment expanded medical debt relief and opened eight new financial centers at city-run hospitals in four boroughs. The program will relieve some or all medical debt on a one-time basis for up to 500,000 New Yorkers. The initiative partners with Undue Medical Debt, a nonprofit that purchases qualifying medical debt portfolios from providers and collection agencies at pennies on the dollar. Since 2024, the program has canceled $135 million in medical debt for 75,000 people. There is no application process; eligible households earn at or below 400% of the Federal Poverty Line or have medical debt equal to 5% or more of annual household income. Debt relief recipients are notified that acquired debt has been erased and will owe nothing and face no tax penalty.
Read at www.amny.com
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