Gov. Phil Murphy announced Monday a fourth round of medical debt relief for New Jerseyans.
NJBIZ has reported on the previous rounds. Through a partnership with Undue Medical Debt, the state leverages American Rescue Funds and Undue purchases large, bundled portfolios of past-due medical debt for pennies or less on the dollar. Then, rather than collect, Undue erases the debt.
This latest round leverages roughly $5.8 million ARP funds (from the state’s investment in medical debt abolishment). Undue will purchase medical debt from RWJBarnabas Health from the secondary debt market. As a result, some 629,000 New Jersey residents will see a combined $927 million in retired medical debt.
The initiative supports those who are least able to pay: individuals who qualify at or below 400% of the federal poverty line or have medical debts that total 5% or more of their annual income.
Since last August, the total debt forgiven through this partnership with Undue now represents over $1.1 billion for 776,000 New Jerseyans.
In an April 21 press release, Murphy said that nobody should have to choose between their health and their financial stability.
“My administration has pursued lasting systemic reforms to put more affordable health care in reach for New Jersey families and better protect our residents from accumulating debt,” said Murphy.
The Murphy administration says this latest round builds on other efforts, such as advancing protections to safeguard New Jerseyans from falling into medical debt (including the prohibition of credit reporting for most medical debts). It’s also complemented by consumer-focused policies that advance prescription drug affordability, and more.
A silent crisis
By the numbers
The total debt forgiven through the partnership with Undue Medical Debt now represents over $1.1 billion for 776,000 New Jerseyans.
“Meanwhile, our work with Undue Medical Debt has provided tangible relief to hundreds of thousands of New Jersey families, retiring over $1 billion in medical debt,” said Murphy. “I am grateful to our partners in this space – and I look forward to continuing our work to build a healthier, more affordable New Jersey.”
“I’m very proud that we’ve helped the state and Gov. Murphy reach this momentous milestone of over $1 billion of medical debt erased for New Jersey residents,” said Undue Medical Debt CEO and President Allison Sesso. “I also must thank RWJBarnabas Health for their partnership and all the providers that have stepped up to help us remove these unpayable burdens of families.”
The medical debt relief has no application process.
In the coming weeks, these households will receive an Undue Medical Debt branded letter. The correspondence will inform recipients about the abolishment of some – or all – of their medical debt.
“I’m thrilled for the hundreds of thousands of people who will soon be receiving this good news in the mail,” said Sesso.


State Health Commission Dr. Kaitlan Baston said that medical debt is a silent crisis affecting millions of families.
“Health care should never be dictated by someone’s ability to pay,” she said. “By addressing medical debt, we empower individuals to focus on their health and future rather than the burden of financial insecurity.
“Today’s announcement is a massive win and a testament to the Murphy administration’s commitment to making health care more affordable – and accessible for New Jersey’s residents.”