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NORTH AMERICAN Newsline JANUARY 24, 2025 | The Indian Eye 20

NYC Mayor Relieves $80 Million in Medical

Debt for Working-Class New Yorkers

Pioneering Program Launched by Mayor Adams Relieves Medical Debt for

35,000 New Yorkers in Partnership with Undue Medical Debt

OUR BUREAU
NEW YORK, NY
ew York City Mayor Eric Adams and New
York City Department of Health and Men-
Ntal Hygiene (DOHMH) Acting Commis-
sioner Dr. Michelle Morse have announced that,
beginning this week, 35,000 New Yorkers will start
receiving letters notifying them that their medical
debt has been eliminated by a pioneering program
launched by Mayor Adams last year — clearing $80
million in debt. Medical debt — the number one
cause of bankruptcy in the United States — dispro-
portionately affects uninsured, under-insured, and
low-income households, and the city’s investment
of $18 million over three years will relieve a total
of over $2 billion in medical debt for 500,000 work-
ing-class New Yorkers on a one-time basis.
The city has partnered with Undue Medical
Debt, a national New York City-based nonprofit
specializing in buying and ultimately wiping out
medical debt to acquire debt portfolios and retir-
ee debt from health care providers and hospitals
across New York City. There is no application pro-
cess for New York City’s one-time debt relief pro-
gram, which is the largest municipal initiative of its
kind in the country. have faced that reality for years,” said DOHMH recipients will then be notified that their debt has
“Working-class families should not have to Acting Commissioner Dr. Morse. “We are eager to been bought by a third party and erased, with no
choose between paying medical bills and keeping get much needed debt relief to as many New York- strings attached. Recipients owe nothing on the
a roof over their heads, and thanks to our admin- ers as possible, as soon as possible. We look for- debt and face no tax penalty. New Yorkers who fit
istration, they won’t have to,” said Mayor Adams. ward to reaching our goal of 500,000 New Yorkers one of the two eligibility criteria will qualify for the
“With this debt relief program, our administration over the next three years so that those hardest hit debt relief announced today if their debt has been
is following through on its promise to relieve $2 by medical debt can instead focus on what matters acquired: 1) having annual household income at or
billion in medical debt, starting with putting $80 most: their health and wellness.” below 400 percent of the Federal Poverty Line or
million back in the pockets of working-class New “As a national nonprofit based in the borough 2) having medical debt equal to 5 percent or more
Yorkers this week alone. Our administration is of Queens, I’m proud to be partnering with the of their annual household income.
committed to making New York City more afford- City of New York to bring medical debt relief to To supplement the city’s investment, Undue
able and the best place to raise a family.” our neighbors and community members who are Medical Debt and the Mayor’s Fund to Advance
“In thousands of mailboxes this week, New burdened by the financial and emotional toll of New York City will also partner to raise additional
Yorkers will find a letter from Mayor Adams and medical debt,” said Allison Sesso, CEO and pres- funding over three years in order to relieve more
our partner, Undue Medical Debt, stating that their ident, Undue Medical Debt. “We look forward to medical debt. New Yorkers interested in helping
outstanding medical debt has been abolished,” said more rounds of medical debt relief by collaborating relieve medical debt can donate online.
Deputy Mayor for Health and Human Services with local providers and hospitals to build on their More than 100 million Americans hold some
Anne Williams-Isom. “A total of 35,000 constitu- financial assistance and community benefit pro- medical debt, with the total amount nationwide
ents will receive letters relieving $80 million in to- grams through the removal of these debts. While exceeding $195 billion. Carrying medical debt can
tal debt. It is the first round of relief for a program we know medical debt relief isn’t a silver bullet, it undermine financial stability and mobility, as it can
set to touch roughly half a million New York City provides patients a clear runway for re-engaging affect credit scores and put individuals and fami-
residents in the coming months and years. As we in the health care system by quickly and efficiently lies in difficult positions to choose between care
work toward structural change in our health care removing an unnecessary barrier to care. We are and other necessary expenses. Black and Latino
system to help people avoid debt in the first place, excited to bring this unique model to our city.” communities are 50 percent and 35 percent, re-
we are doing our part right now to help individuals Undue Medical Debt will purchase bundled spectively, more likely to hold medical debt than
and families thrive free from medical debt.” medical debt portfolios from providers, like hos- their White counterparts, and while medical debt
“Receiving life-saving medical care should not pitals and commercial debt buyers, to then abol- may be held by those without insurance, even those
lead to financial stress, yet, countless New Yorkers ish that debt at pennies on the dollar. Debt relief with insurance are at risk of carrying medical debt.

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