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NEW YORK - Nearly 50,000 people in New Jersey will have $100 million in medical debt erased, Governor Phil Murphy said on Tuesday, in one of the largest cases of a state providing direct relief to people unable to pay medical bills.Murphy allocated $550,000 in federal American Rescue Plan funds and partnered with Undue Medical Debt , a non-profit that buys unpaid medical bills from hospitals at a discount, to execute the one-time debt abolishment.
"Those who qualify for the relief are at least four times below the federal poverty level or have medical debt that equals 5% or more of their annual income, according to the press release.The relief will go to 17,905 people who owed $61.6 million to Prime Healthcare hospitals and 31,748 people owing about $38.4 million to collection agencies and other debt holders.Undue has partnered with local governments to acquire debt from hospitals since 2022.
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