$18 Million Investment Will Provide Relief for up to 500,000 New Yorkers Burdened With Medical Debt, Becoming the Largest Municipal Medical Debt Relief Program in the Country
Our Bureau
New York, NY
New York City Mayor Eric Adams and New York City Department of Health and Mental Hygiene (DOHMH) Commissioner Dr. Ashwin Vasan today announced a pioneering medical debt relief program, that will invest $18 million over three years to relieve over $2 billion in medical debt for hundreds of thousands of working-class New Yorkers. Medical debt — the number one cause of bankruptcy in the United States — disproportionately affects uninsured, under-insured, and low-income households, and the city’s program would wipe out debt for up to 500,000 New Yorkers on a one-time basis. The city will partner with RIP Medical Debt, a national, New York City-based nonprofit specializing in buying and ultimately wiping out medical debt to acquire debt portfolios and retiree debt from health care providers and hospitals across New York City. Affected New Yorkers will then be notified that their medical debt has been relieved; there is no application process for this program. The one-time debt relief program, the largest municipal initiative of its kind in the country, will be launched in early 2024 and run for three years.
“Getting health care shouldn’t be a burden that weighs on New Yorkers and their families,” said Mayor Adams. “Since day one, our administration has been driven by the clear mission of supporting working-class New Yorkers and today’s investment that will provide $2 billion in medical debt relief is another major step in delivering on that vision. Up to half a million New Yorkers will see their medical debt wiped thanks to this life changing program — the largest municipal initiative of its kind in the country. No one chooses to go into medical debt — if you’re sick or injured, you need to seek care. But no New Yorker should have to choose between paying rent or for other essentials and paying off their medical debt, which is why we are proud to bring this relief to families across the five boroughs, as we continue to fight on behalf of working-class New Yorkers.”
“For hundreds of thousands of New Yorkers and for millions of Americans, medical debt creates anxiety, uncertainty, and stress,” said Deputy Mayor for Health and Human Services Anne Williams-Isom. “It weighs not only on individual and familial balance sheets, but may cause some to put off additional care and limits upward financial mobility. New York City’s investment through this partnership will help working people and families advance their health and financial well-being so they can thrive, instead of just survive. Furthermore, we realize this issue is part of a larger complex health care system and we look forward to continuing to advocate for systemic changes to help New Yorkers avoid medical debt in the future.”
“Throughout my career as a doctor, I have seen first-hand how high health care costs and medical debt can force patients to make impossible choices,” said DOHMH Commissioner Dr. Ashwin Vasan. “No one in New York City, or in America, in 2024, should have to choose between getting the health care they need and paying their rent or buying food to feed their families. But as a provider, I have seen all-too-often patients who delay or forgo lifesaving care because of fear of high costs leading to debt. Medical debt caused by the exorbitant and ever-rising costs of health care is the number one cause of personal bankruptcy in the United States, and also has our economy on an unsustainable path. As a physician and advocate, I know the medical debt is killing New Yorkers and killing our economy, and today, this city is stepping up to say that the people deserve better.”
“It’s gratifying to see this collaboration come together since RIP Medical Debt was founded here in New York City,” said Allison Sesso, president and CEO, RIP Medical Debt. “Medical debt is a failing of the system writ large, not people. Beyond creating often unpayable financial burdens, medical debt undermines one’s mental health as well. By making future care more accessible, this initiative aligns well with hospitals and health systems’ community benefit and health equity efforts.”
“We applaud Mayor Adams and his administration for making medical debt relief a top priority for those in greatest need. At Episcopal Health Services, we recognize daily the significant burden mounting health care costs have on our patients and our community. We wholeheartedly support this measure, understanding it will have a significant positive impact on the lives and wellbeing of those we serve,” said Gerard M. Walsh, CEO, Episcopal Health Services.
