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. 

Why It Matters 

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. 

What To Know 

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.” 

What Happens Next 

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.  

What People Are Saying  

“Our administration is taking a range of steps to support working-class families, and this program is one of these steps,” Deputy Mayor for Health and Human Services Suzanne Miles-Gustave said in a statement about the medical debt announcement. “We expect more relief to come in the coming months and years for hundreds of thousands more families. Thank you to our partners at Undue Medical Debt and the Mayor’s Fund for helping lift this financial weight from the shoulders of so many New Yorkers.” 

New York City Department of Health and Mental Hygiene Acting Commissioner Dr. Michelle Morse said erasing medical debt isn’t just a gesture of compassion, it’s a necessity to create a more equitable and affordable system “so that New Yorkers do not fear financial ruin after seeking necessary medical care. By relieving debt burden, we’re providing people with the freedom to prioritize their health while making our city stronger and more accessible for everyone,” she said in a statement.

Newsweek reached out to the mayor’s office and Undue Medical Debt for comment.

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