New York City Mayor Adams forgave medical debt of 75,000 residents

Minara Helen: New York City has canceled nearly $135 million in medical debt for more than 75,000 residents, Mayor Eric Adams said Wednesday.

Eliminating medical debt was one of the key commitments Adams laid out in his State of the City address last year. Last year, Adams announced an $18 million plan to relieve at least some of the medical debt for 500,000 working-class New Yorkers over three years, amounting to over $2 billion is estimated debt relief.

Medical debt is one of the top reasons people file for bankruptcy in the U.S., according to Debt.org. Adams noted that medical debt also disproportionately affects uninsured, under-insured and low-income households. In a statement, Adams said medical debt is not only a major financial and emotional stressor, but it is also a barrier for many people to access the health care they need.

“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,” he said. “We are proud to announce another milestone in our initiative to abolish medical debt for New Yorkers.” The administration partners with Undue Medical Debt, a national non-profit organization founded in New York City that works to erase the financial burden of medical debt for Americans. Undue Medical Debt uses donations to buy bundled medical debt portfolios from hospitals and commercial debt buyers to help people eliminate their debt. To date, the organization has raised more than $31,000 for New York medical debt relief. “Removing financial barriers to care is more important than ever,” Undue Medical Debt President and CEO Allison Sesso said in a statement. “This initiative helps families breathe easier and re-engage with the health care system without fear of financial ruin.”

There is no application process for this program – affected New Yorkers will be notified by Undue Medical Debt. This is a one-time debt relief program that will last for three years.

This announcement came as Adams celebrated the opening of eight NYC Financial Empowerment Centers run by the New York City Department of Consumer and Worker Protection (DCWP) at select NYC Health + Hospitals locations across the city. The centers are meant to help residents with better financial planning to avoid entering medical debt in the future.

“Financial stressors are one of the most common non-medical needs identified by NYC Health + Hospitals patients and there is a close connection between wealth and health,” NYC Health + Hospitals Vice President and Chief Population Health Officer Dr. Nichola Davis said in a statement. “By bringing Financial Empowerment Center services to our health system, we are providing our patients with information and tools to improve their financial health as well as their physical and mental health. We are grateful to Mayor Adams and DCWP for their leadership to alleviate financial stress experienced by our patients.” Mayor Adams said his administration will not stop until it reaches its goal of providing $2 billion in medical debt relief to New Yorkers.

“Through the largest municipal medical debt relief program in the nation and providing greater access to financial resources, we are delivering debt relief and peace of mind to New Yorkers across the five boroughs, as we put money back in their pockets and make our city more affordable every day,” Adams said.

BP/SM