NYC plans to forgive $2B in medical debt for over 500K residents in 3 years. Here’s how other cities are taking action

Core Insights - New York City has canceled nearly $135 million in medical debt for over 75,000 residents as part of a program aimed at relieving medical debt for half a million working-class individuals [1][2] - The initiative is in partnership with Undue Medical Debt, a nonprofit that purchases and forgives overdue medical bills at a fraction of their face value [2][3] - The program is set to relieve more than $2 billion in medical debt for 500,000 people, with an earmarked budget of $18 million over three years [3] Medical Debt Crisis - Over 100 million Americans hold some form of medical debt, with the total amount exceeding $220 billion [4] - Black and Latino communities are disproportionately affected, being 50% and 35% more likely, respectively, to hold medical debt compared to white counterparts [4] - Even insured individuals face challenges, with a 2023 survey indicating that many struggle to afford healthcare costs [5] Impact on Individuals - Financial strain from medical debt leads to significant lifestyle changes, with over a third of respondents delaying or skipping necessary care [5] - Nearly 40% of individuals reported cutting back on essentials such as food, heating, or rent due to medical debt [5] - A quarter of respondents have taken on extra work or second jobs to manage medical payments, and 37% have had to deplete their savings [5]