According to reports, more than 53,000 New Jersey residents are getting a much-needed break, as about $86 million in medical debt is being wiped away. Governor Phil Murphy shared the news on Friday, explaining that this relief is part of the state’s ongoing partnership with the national nonprofit Undue Medical Debt.

For many families, unpaid medical bills have been a constant source of stress, often piling up after unexpected illnesses or emergencies.
This effort is meant to ease that burden and give people some breathing room. By forgiving these debts, the state hopes to help residents move forward without the weight of overwhelming healthcare costs holding them back.
How to Qualify for New Jersey Medical Debt Relief
According to a recent Patch report:
- You must be a New Jersey resident
- You qualify if either of the following applies:
- Your household income is at or below 400% of the federal poverty level
- Your medical debt equals 5% or more of your yearly income
- If you meet one of these conditions, you may be eligible for medical debt forgiveness
Officials say these guidelines are designed to make relief accessible to residents facing significant financial strain due to healthcare costs.
According to Government statistics, “So if your annual household income is at or below ~$62,600 for a single adult in 2026, it would be at or below 400% of the federal poverty level for that year.”
New Jersey’s Top Schools
Affordable healthcare is important because people shouldn’t have to choose between seeing a doctor and paying their bills. When care costs too much, many people delay or skip treatment, which can allow small problems to develop into bigger ones. When healthcare is affordable, people can get help early, stay healthier, and worry less about money.
The need is now more important than ever for folks in Washington, from both sides of the aisle, to figure out and solve.
Governor Murphy said, “To date, this partnership has seen nearly $1.4 billion in medical debt eliminated for over 828,000 New Jersey residents.”
What are YOUR first thoughts on this plan? Feel free to post your thoughts in the “comments” section below.
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