Editor’s note: This is information to follow up on our previous article from the Mayor’s Office about the agreement with Undue Medical Debt to forgive the debt of New Yorkers. You can view the original article on this topic here, and here are some relevant segments from the article:
New York City Mayor Eric Adams and New York City Department of Health and Mental Hygiene (DOHMH) Acting Commissioner Dr. Michelle Morse today announced that, beginning this week, 35,000 New Yorkers will start receiving letters notifying them that their medical debt has been eliminated by a pioneering program launched by Mayor Adams last year — clearing $80 million in debt. 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 investment of $18 million over three years will relieve a total of over $2 billion in medical debt for 500,000 working-class New Yorkers on a one-time basis.
The city has partnered with Undue 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. There is no application process for New York City’s one-time debt relief program, which is the largest municipal initiative of its kind in the country.
“In thousands of mailboxes this week, New Yorkers will find a letter from Mayor Adams and our partner, Undue Medical Debt, stating that their outstanding medical debt has been abolished,” said Deputy Mayor for Health and Human Services Anne Williams-Isom. “A total of 35,000 constituents will receive letters relieving $80 million in total debt. It is the first round of relief for a program set to touch roughly half a million New York City residents in the coming months and years. As we work toward structural change in our health care system to help people avoid debt in the first place, we are doing our part right now to help individuals and families thrive free from medical debt.”
The following questions, answered by the Department of Health and Mental Hygiene, will give some clarity to how this program will work, and how eligible New Yorkers will benefit:
- How are the beneficiaries of the program chosen since there’s no application ( if my understanding is correct)?
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Correct, New York City residents do not have to apply to Undue Medical Debt to have their medical debt abolished, and not all eligible persons will have their debts cancelled. Under its contract with the City, Undue will approach hospitals and health care providers to donate or sell to them the medical debt of eligible residents, after which, Undue will determine which individuals who hold debt with those hospitals and health care providers meet the eligibility criteria to have their debt forgiven. Eligibility criteria for the cancellation of medical debt under the program requires the recipient to be a NYC resident, have qualified medical debt, and either (a) live in a household with income between 0% and up to 400% of FPL or (b) live in a household with income below 1000% FPL and have medical debt that represents at least 5% of their annual household income.
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How does the city or the Undue Medical Debt charity know the income level of those they are purchasing the debt of (whether 400% of federal poverty level or more than 5% of household expenses)? Is it from previous income taxes or another source?
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Undue Medical Debt determines program eligibility based on a proprietary analysis of patient accounts data files from the hospitals and health care providers with which it enters into Business Associate Agreements and Non-Disclosure Agreements. Undue Medical Debt determines an individual’s eligibility by matching individual patients and/or account guarantors with information maintained through FinThrive, a third party data provider, regarding their county of residence, estimated household income, household size, bankruptcy status, and related characteristics.
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Are there groups of residents who will be first for the program, such as city workers and retirees, or can anyone be chosen?
- No, no specific groups of NYC residents will be selected first for the program.
- Any other details you would like to provide, including where people can learn more, would be appreciated.
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Is there a time limit to the debt that can be forgiven? In other words, can debt from five years, ten years, etc, be forgiven?
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There is no time limit to the debt that can be forgiven.
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Also, as these Forgiveness letters are sent, if your office receives letters from constituents expressing joy and relief, would you be able to share them with us (personal addresses and identifying info removed)?
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We are unable to share this but when available may be able to share recipient testimonials. Through our contract with Undue Medical Debt, we may have testimonial at the end of this year or early next year at the latest.
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Banner Image: Medicine. Image Credit – Piron Guillaume
NYC Dept of Health and Mental Hygiene
The New York City Department of Health and Mental Hygiene is the department of the government of New York City responsible for public health along with issuing birth certificates, dog licenses, and conducting restaurant inspection and enforcement. The New York City Board of Health is part of the department. Its regulations are compiled in title 24 of the New York City Rules (the New York City Health Code). Since March 2022, the commissioner has been Ashwin Vasan.