Aiexpress – New York City officials and a nonprofit organization have joined forces to eliminate a staggering $2 billion in medical debt that is burdening the lives of 500,000 New Yorkers. This groundbreaking initiative, announced by the mayor’s office on Monday, aims to bring about life-changing relief for those grappling with the financial weight of their healthcare expenses.
The debt relief program aims to assist residents of the city who are burdened with medical debt that accounts for 5% or more of their annual household income. Additionally, individuals with an annual household income that falls below 400% of the federal poverty line are also eligible for the program. This initiative has been put forth by officials from Adams’ office and the city’s health department.
The city has committed to investing $18 million over the next three years in collaboration with the New York-based nonprofit RIP Medical Debt. This program aims to provide a fresh start for hundreds of thousands of local residents who have been chosen to participate.
Mayor Eric Adams announced that the $2 billion program would become the most significant municipal initiative of its kind in the country.
In a statement, Adams emphasized that accessing healthcare should not be a source of stress for New Yorkers and their families.
“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. 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.”
The mayor’s office said that RIP Medical Debt would buy bundled medical debt portfolios from providers, such as hospitals and business debt buyers, and then get rid of the debt for very little money.
People who get help from the program will be told that their cash problems are solved, with no hidden conditions. The city made it clear that there is no entry process.
The program is set to begin in early 2024 and last for three years.
Medical bills have become the main reason people file for bankruptcy in the US. A 2022 Kaiser Family Foundation study says that more than 100 million Americans have medical debt that ranges in severity and amounts to about $195 billion.
