For dozens of New Yorkers, accessing medical services represents a very heavy expense which leaves them with significant debts. Aware of the situation, the city's mayor, Eric Adams, announced that A debt equivalent to millions of dollars will be purchased and eliminated for the benefit of around 500,000 citizens.
According to what was announced, the city will invest US$18,000,000 in partnership with a non-profit organization that purchases medical debt at much lower costs and then eliminates it. And, as mentioned in an article by TI have New York Times, Hospital systems are often willing to sell their debt at deep discounts, so the investment could mean more than 200 billion of unpaid debt.
The relevance of this initiative is that it is estimated that Four in ten adults in the United States have some type of medical debt, and in New York some hospitals go so far as to sue patients for not settling their bills, even for debts of less than US$1,000.
According to the city mayor, This is the largest municipal initiative of its kind in the country. In this regard, the city's health commissioner, Dr. Ashwin Vasan, told the media: “no one in New York City, or in the United States, in 2024, should have to choose between receiving the medical care they need and paying rent or buy food to feed their families.
Who can benefit from medical debt elimination in New York
Daniel Lempert, spokesperson for the non-profit organization RIP Medical Debt, shared that, through the program that will eliminate medical debt, the city's hospitals will be asked to examine the books to identify those patients who meet the following requirements:
- Patients whose unpaid medical bills represent at least 5 percent of their annual family income.
- Patients in households with incomes less than four times the Federal poverty line, which is US$31,200 for a family of four.
Based on the above, they clarified that New Yorkers do not need to apply to be included in the program, Those who are chosen to have their debt eliminated will simply receive a letter in the mail.
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