Tens of thousands of New Yorkers saw some medical debt relief thanks to an $18 million investment from the city, Mayor Eric Adams announced on Wednesday. Now, even more New Yorkers are set to get additional help.

The mayor also announced the opening of eight new financial centers at city-run hospitals in four of the five boroughs. 

The move will relieve some or all of the medical debt for 500,000 New Yorkers on a one-time basis. It is part of a program Adams launched last year with Undue Medical Debt, a nonprofit that buys medical debt to acquire debt portfolios from healthcare providers, hospitals, and collection agencies.

Since the program launched in 2024, it has thus far canceled $135 million in medical debt for 75,000 New Yorkers.

Eligibility for the program

There is no application process for the program. The nonprofit purchases a bundle of qualifying medical debt at “pennies on the dollar,” the mayor’s office explained. Debt relief recipients will then be notified that their debt has been bought by a third party and erased, the mayor’s office said, adding that recipients will owe nothing on the debt and face no tax penalty. 

New Yorkers who fit one of the two eligibility criteria will qualify for the debt relief if their debt has been acquired:

Having an annual household income at or below 400% of the Federal Poverty Line
Having medical debt equal to 5% or more of their annual household income.

“For too long, and for too many, medical debt has not only been a barrier for those looking to get the health care they need, but also a major financial and emotional stressor for families through no fault of their own,” the mayor said. “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.”

Healthcare debt in the United States is an ongoing problem. Many people struggle to pay for healthcare, and approximately 9% owe over $250 due to health costs, according to the National Institutes of Health. 

Financial experts have said carrying medical debt can undermine financial stability by affecting credit scores. 

It can also put individuals and families in difficult positions to choose between care and other necessary expenses, Michelle Morse, M.D., NYC Department of Health and Mental Hygiene acting commissioner, said.

“Erasing medical debt isn’t just a gesture of compassion, it’s a necessity when so many New Yorkers are often forced to choose between their health and basic needs like food or housing,” she said. “We must 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.”

Preventing medical debt

These free one-on-one financial counseling and coaching services are now open at the following NYC Health and Hospitals locations:

BRONX

NYC Health + Hospitals/Gotham Health, Tremont

1920 Webster Avenue, Bronx, NY 10457

Mondays and Tuesdays, 9:00 AM – 5:00 PM
NYC Health + Hospitals/Jacobi

1400 Pelham Pkwy. S, Building 8 Atrium, Bronx, NY 10461

Wednesdays and Thursdays, 9 a.m. – 5 p.m.
BROOKLYN

NYC Health + Hospitals/Gotham Health, East New York

2094 Pitkin Ave., 2nd Floor, Room 202, Brooklyn, NY 11207

Tuesdays and Thursdays, 9 a.m. – 5 p.m.
NYC Health + Hospitals/Kings County

451 Clarkson Ave., E Building, Main Lobby, Brooklyn, NY 11203

Mondays and Wednesdays, 9 a.m. – 5 p.m.
MANHATTAN

NYC Health + Hospitals/Bellevue

462 First Ave., New York, NY 10016

Finance Department, First Floor, Hospital Building

Tuesdays and Thursdays, 9 a.m. – 5 p.m.
NYC Health + Hospitals/Gotham Health, Gouverneur

227 Madison St., 5th Floor Lobby, New York, NY 10002

Mondays and Wednesdays, 9 a.m. – 5 p.m.
QUEENS

NYC Health + Hospitals/Elmhurst

79-01 Broadway, Main Lobby, Broadway Entrance, Elmhurst, NY 11373

Mondays and Wednesdays, 9 a.m. – 5 p.m.
NYC Health + Hospitals/Queens

82-70 164th St., Main Building, Conference Room D, Jamaica, NY 11434

Tuesdays and Thursdays, 9 a.m. – 5 p.m.