Mayor Adams Set to Erase $2 Billion in Medical Debt for 500K NYC Residents

Mayor Adams Set to Erase $2 Billion in Medical Debt for 500K NYC Residents

by BoroPark24 Staff

In an announcement made yesterday, Mayor Eric Adams shared that New York City intends to cancel over $2 billion in medical debt for up to 500,000 residents.

The mayor stated that New York City will spend $18 million over three years while working with RIP Medical Debt, an organization that purchases bundled medical debt from third-party debt sellers. The purchases come at pennies on the dollar. The nonprofit focuses on the medical debt of those with low incomes or financial hardships. After purchasing the debt bundles, RIP forgives the amounts in order to make a difference in the top cause of personal bankruptcy.

"We're taking advantage of that pricing and that for-profit model," said  President and CEO of RIP Medical Debt Allison Sesso, who was on hand when the mayor made his announcement at City Hall today. "Except we're not trying to make any money back. We are turning it into a charitable purpose."

"For middle- and working-class New Yorkers, medical bills can be financially devastating," Adams said today during his announcement of 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."

Recipients of the relief will be notified that their debt has been bought by a third party and erased without having to apply or fill out any application. 

"If you are able to ... save $2 billion in debt, that $2 billion trickles down to those households, who are not going to fall into our safety net. They're not going to fall into our homeless system," the mayor explained why spending $18 million of the cash-strapped city's funds makes sense.

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