New York City plans to wipe out $2 billion in medical debt for 500,000 residents

New York City intends to wipe out more than $2 billion in medical debt for up to 500,000 residents, tackling a top cause of personal bankruptcy, Mayor Eric Adams announced Monday.

The city is working with RIP Medical Debt, a nonprofit that buys medical debt in bulk from hospitals and debt collectors for pennies on the dollar. The group targets the debt of people with low incomes or financial hardships and then forgives the amounts.

Under the program, the city will spend $18 million over three years.

“For middle- and working-class New Yorkers, medical bills can be financially devastating,” Adams said as he announced the plan. “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.”

https://boredbat.com/new-york-city-plans-to-wipe-out-2-billion-in-medical-debt-for-500000-residents/

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