New Jersey is poised to hit $1billion dollars in medical debt relief this month.
Meet Stephanie
Amount abolished: $680.10
“The medical debt we accumulated was a result of my [13-month-old] son’s bacterial meningitis diagnosis, which completely turned our lives upside down. The added burden of managing medical bills alongside his diagnosis was overwhelming.
[It was during the Covid-19 pandemic.] We were at the hospital for two weeks under intense monitoring by multiple doctors… Thankfully, he recovered. Within that time, we were getting bills constantly and making follow-up appointments. We had co-pays that just piled up as well. We were so happy to be home and obviously so grateful and so lucky. But then [we were] hit with the reality of what we owed.
I was both shocked and incredibly grateful to learn that a portion of our debt had been [erased]. My family and I cannot thank you enough for this generous gift!”
Stephanie is one of the more than 620,000 individuals across New Jersey who have received abolishment thanks to the partnership between the Office of Governor Phil Murphy and Undue. While we do not celebrate the need for our model, we do celebrate the significant steps states are taking to mitigate the harms of medical debt for people by passing legislation and talking to their communities about changes they want to see. New Jersey is a leader in this space – launching their abolishment work in tandem with significant changes to laws related to medical debt.
In July of 2024, the legislature passed the Louisa Carmen Medical Debt Relief Act. The bill is named in honor of health policy staffer Louisa Carmen, who lost her life in a car accident on New Year’s Day of 2024. The law led to key changes for New Jersey residents, including a ban on credit reporting, limits on interest rates and wage garnishment, as well as providing additional protections for patients from debt collectors and medical creditors. Importantly the robust notification and accountability standards in the law are patient-centered; any medical debt reported in violation of the law is required to be voided. Further, notifications require that enforcement language is included in all communications so that people understand their rights. These changes better protect patients who are struggling with medical debt, many of whom are stuck in intractable positions, lacking the savings to pay high out of pocket costs.
In our work to abolish debt, we are afforded the opportunity to talk to thousands of individuals who carry medical debt. Simply put, people are unable to pay their medical bills—not because they don’t want to but because they cannot afford to. Patients must be better shielded from our dysfunctional healthcare financing system and policy makers must act to ensure that patients are protected. New Jersey is taking steps to do just that – helping people in the immediate and helping them better manage the stress of unaffordable medical bills. We applaud the state for this monumental moment and hope others will heed the call to end medical debt once and for all.