New York City has canceled nearly $135 million in medical debt for more than 75,000 residents, Mayor Eric Adams said Wednesday. \u00a0<\/p>\n
Eliminating medical debt was one of the key commitments Adams laid out in his State of the City address last year.\u00a0<\/p>\n
Why It Matters\u00a0<\/p>\n
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.\u00a0<\/p>\n
Medical debt is one of the top reasons people file for bankruptcy in the U.S., according to Debt.org<\/a>. Adams noted that medical debt also disproportionately affects uninsured, under-insured and low-income households.\u00a0<\/p>\n What To Know\u00a0<\/p>\n In a statement<\/a>, Adams said medical debt is not only a major financial and emotional stressor, but it is also\u00a0a barrier for many people to access the health care they need. \u00a0<\/p>\n “Working-class New Yorkers shouldn\u2019t have to live in fear that getting sick will break their bank, and, thanks to our administration, they won\u2019t have to,\u201d he said. \u201cWe are proud to announce another milestone in our initiative to abolish medical debt for New Yorkers.\u201d\u00a0<\/p>\n The administration partners with Undue Medical Debt,<\/a> 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. \u00a0<\/p>\n \u201cRemoving financial barriers to care is more important than ever,\u201d Undue Medical Debt President and CEO Allison Sesso said in a statement. \u201cThis initiative helps families breathe easier and re-engage with the health care system without fear of financial ruin.\u201d\u00a0<\/p>\n There is no application process for this program \u2013 affected New Yorkers will be notified by Undue Medical Debt. This is a one-time debt relief program that will last for three years. \u00a0<\/p>\n 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\u00a0 the city. The centers are meant to help residents with better financial planning to avoid entering medical debt in the future. \u00a0<\/p>\n \u201cFinancial 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,\u201d NYC Health + Hospitals Vice President and Chief Population Health Officer Dr. Nichola Davis said in a statement<\/a>. \u201cBy 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.\u201d\u00a0<\/p>\n What Happens Next\u00a0<\/p>\n Mayor Adams said his administration will not stop until it reaches its goal of providing $2 billion in medical debt relief to New Yorkers. \u00a0<\/p>\n \u201cThrough 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,\u201d Adams said. \u00a0<\/p>\n What People Are Saying \u00a0<\/p>\n \u201cOur administration is taking a range of steps to support working-class families, and this program is one of these steps,\u201d Deputy Mayor for Health and Human Services Suzanne Miles-Gustave said in a statement about the medical debt announcement. \u201cWe 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\u2019s Fund for helping lift this financial weight from the shoulders of so many New Yorkers.\u201d\u00a0<\/p>\n New\u00a0York City Department of Health and Mental Hygiene\u00a0Acting\u00a0Commissioner 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\u00a0seeking necessary medical care. By relieving debt\u00a0burden, we’re providing people with the freedom to prioritize their health\u00a0while making our city stronger and\u00a0more\u00a0accessible for everyone,” she said in a statement.<\/p>\n Newsweek reached out to the mayor’s office and Undue Medical Debt for comment. <\/p>\n