New Jersey Finalized Medical Debt Relief Program
State officials cleared $90 million in medical debt for 21,000 patients in the program's final installment.
Updated on Sept. 21, 2026 in Debt Relief
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New Jersey has completed its medical debt relief initiative, which eliminated $90 million in debt for 21,000 patients through a $550,000 payment to Hackensack Meridian Health. This action serves as the final installment of a state-funded program that has retired $1.6 billion in medical debt since 2023.
Why it matters
The program was designed to alleviate the significant financial pressure caused by high healthcare costs for residents. By targeting households earning below 400% of the federal poverty line or those with debt exceeding 5% of their annual income, the initiative provided direct relief to those most impacted by medical bills.
The final payment to Hackensack Meridian Health wiped out $90 million in debt for 21,000 patients, averaging between $4,000 and $4,500 per individual. This installment brings the total medical debt retired by the state since 2023 to $1.6 billion.
The players
Hackensack Meridian Health
A health system operating 18 hospitals and 500 care locations that received state funds to forgive patient balances.
Undue Medical Debt
A non-profit organization that partners with government agencies to purchase and abolish unpaid medical bills on secondary markets.
The details
The state government collaborated with the non-profit organization Undue Medical Debt to identify and resolve these outstanding balances. The initiative functions by purchasing medical debt on secondary markets where it is frequently sold for pennies on the dollar, allowing the state to maximize the impact of funds sourced from the federal American Rescue Plan. Hackensack Meridian Health, which operates 18 hospitals and 500 care locations, was the final provider to participate in this specific effort.
Timeline
The medical debt relief program first began in 2023.
The state issued payments to Prime Healthcare and Atlantic Health in 2024.
Officials announced the final debt relief payment on September 17, 2026.
The Health Department confirmed Hackensack Meridian as the final provider on September 18, 2026.
Money Landscape
This effort is part of a broader trend of state governments utilizing federal American Rescue Plan funds to address localized affordability issues. It marks the conclusion of a significant state-led effort to mitigate the accumulation of consumer medical debt.
Residents who met the eligibility criteria regarding income or debt-to-income ratios have had their specific medical debts cleared through this program. If you are struggling with outstanding medical bills, consult a professional to explore available charity care policies or payment assistance programs offered by your healthcare providers.
The takeaway
While this state-funded initiative has successfully retired a large volume of debt, the core issue of medical expense volatility persists. Residents should proactively check their credit reports and review hospital billing statements for accuracy to manage their long-term financial health.
Further reading
For more information on managing healthcare costs, visit the Debt Relief section.
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Should states use taxpayer money to buy and forgive private medical debt for residents?
