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New York City Mayor Eric Adams and New York City Department of Health and Mental Hygiene (DOHMH) Commissioner Dr. Ashwin Vasan 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, underinsured, 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 healthcare providers and hospitals across New York City. Affected New Yorkers will then be notified that their medical debt has been relieved; this program has no application process. The one-time debt relief program, the largest municipal initiative of its kind in the country, will launch 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 medical debt is killing New Yorkers and killing our economy, and today, this city is stepping up to say that the people deserve better.”
To supplement the city’s investment, RIP Medical Debt and the Mayor’s Fund to Advance New York City will also partner to raise additional funding over three years. New Yorkers interested in helping relieve medical debt can donate online.
More than 100 million Americans hold some medical debt, with the total amount nationwide exceeding $195 billion. Carrying medical debt can undermine financial stability and mobility, as it can affect credit scores and put individuals and families in difficult positions to choose between care and other needed expenses. Black and Latino communities are 50 percent and 35 percent, respectively, more likely to hold medical debt than their white counterparts, and while medical debt may be held by those without insurance, even those with insurance are at risk of carrying medical debt.
“In a world where homelessness can touch anyone, from those born into poverty to those with privilege, we face the stark reality that a medical emergency can threaten someone’s financial stability,” said Shams DaBaron, homelessness and housing advocate. “The prevailing notion that homelessness stems solely from mental illness and substance abuse overlooks the struggles of hardworking New Yorkers burdened by the exorbitant costs of healthcare.
Mayor Eric Adams and Commissioner Dr. Ashwin Vasan’s groundbreaking medical debt relief program offers hope to those shackled by medical debt. I commend Mayor Adams and his administration for addressing the root causes of poverty, fostering independence, and employing innovative solutions. Their commitment reinforces New York City’s position as the greatest city in the world.”
