New York City Partners With RIP Medical Debt To Wipe Out $2 Billion In Medical Debt

January 24, 2024

Today's good news story comes from New York City.

New York City is aiming to wipe out over $2 billion in medical debt for up to 500,000 residents.

rip medical debt
NYC / Credit: Leonhard Niederwimmer from Pixabay

Mayor Eric Adams and Dr. Ashwin Vasan, Commissioner of the New York City Department of Health and Mental Hygiene (DOHMH), made the announcement on Monday, showcasing a commitment to alleviate the financial strain on working-class New Yorkers.

This pioneering initiative, backed by an $18 million investment over three years, addresses the pressing issue of medical debt, which stands as the primary cause of bankruptcy in the United States. Through a strategic partnership with RIP Medical Debt, a national nonprofit based in New York City, the city aims to acquire and eliminate medical debt from healthcare providers and hospitals across the five boroughs.

Up to 500,000 New Yorkers will benefit from a one-time debt relief, marking the program as the largest municipal initiative of its kind in the country. Importantly, affected individuals will be notified without the need for an application process, streamlining the relief process.

The program is set to launch in early 2024 and will run for three years.

"For middle- and working-class New Yorkers, medical bills can be financially devastating," Adams said in his announcement. "Working-class families often have to choose between paying their medical bills or some of the basic essentials that they need to go through life."


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