NYC wiping out billions in medical debt for 500K residents
City officials have teamed up with local nonprofit RIP Medical Debt to assist residents with debt equal to or greater […] The post NYC wiping out billions in medical debt for 500K residents appeared first on TheGrio.
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City officials have teamed up with local nonprofit RIP Medical Debt to assist residents with debt equal to or greater than 5% of their annual household income and whose annual household income is 400% or lower of the federal poverty line.
New York City officials have teamed up with a nonprofit to eliminate $2 billion in medical debt for 500,000 residents.
According to the New York Post, the city will collaborate with local nonprofit RIP Medical Debt, investing $18 million over the next three years.
Mayor Eric Adams‘ office said the “life-changing” debt relief program would help residents with medical debt equal to or greater than 5% of their annual household income and those whose annual household income is 400% or lower of the federal poverty level, which is $31,200 for a family of four.
In a statement, Adams said New Yorkers and their families shouldn’t have to bear the financial burden of health care.
“Since day one, our administration has been driven by the clear mission of supporting working-class New Yorkers,” Adams said, “and today’s investment that will provide $2 billion in medical debt relief is another major step in delivering on that vision.”
The mayor’s office said RIP Medical Debt will acquire bundled medical debt portfolios from providers, such as hospitals and commercial debt buyers, and then wipe off the debt for pennies on the dollar.
The city emphasized that there is no application process, and program recipients will receive confirmation of their debt cancelation — no strings attached.
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In the U.S., medical debt is now the leading cause of personal bankruptcy. An estimated $195 billion in medical debt affects over 100 million Americans, according to a 2022 Kaiser Family Foundation analysis.
The new initiative comes a month after New York Gov. Kathy Hochul signed a bill prohibiting hospitals and other healthcare providers from disclosing medical debt to credit bureaus. Barclay Damon LLP reported that the goal of the law was to lessen the financial burden illness and injury can cause an individual.
According to Barclay Damon, a 2023 Urban Institute study revealed that 740,000 New Yorkers have medical debt included on their credit records. People of color are twice as likely to have medical debt reported to a credit agency, and low-income people are three times more likely.
“Up to half a million New Yorkers will see their medical debt wiped thanks to this life-changing program — the largest municipal initiative of its kind in the country,” Adams said of the new initiative, the Post reported. “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.”
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The post NYC wiping out billions in medical debt for 500K residents appeared first on TheGrio.
