More than 75,000 New Yorkers have had a total of $135 million in medical debt forgiven, following an announcement made by Mayor Eric Adams on Wednesday, October 18. The relief comes through a city-backed initiative targeting residents with significant healthcare-related financial burdens.
The program, launched in partnership with nonprofit RIP Medical Debt, requires no application process and quietly identifies eligible individuals through predefined income and debt thresholds. Over the next three years, the city is expected to cancel up to $2 billion in total medical debt for as many as 500,000 working-class residents, offering large-scale financial impact through targeted debt relief.
How the City Is Making Medical Debt Disappear
The relief plan is straightforward: RIP Medical Debt buys bundled debt portfolios from hospitals and clinics — often at a fraction of the face value — and then cancels them entirely, with no strings attached. Those eligible don’t need to apply or even be aware they’re in the program beforehand. Individuals automatically qualify if their medical debt is at least 5% of their annual income or if they earn up to 400% of the federal poverty level.
Once the debt is wiped out, recipients receive a formal notification by mail confirming the cancellation.
The program is funded by $18 million from the city budget, covering the purchase and forgiveness of existing debts. Importantly, this is a one-time relief initiative, not a recurring benefit. Still, the immediate impact for tens of thousands of residents is profound.
One beneficiary, identified only as M., shared a deeply personal letter of gratitude that was published in The US Sun:
“I am writing to express my heartfelt gratitude for the cancellation of my medical debt by NYC and RIP Medical Debt.”
“The burden of medical expenses has been overwhelming, and your assistance has provided me with immense relief and peace of mind – said M., a RIP Medical Debt recipient.”
“Your generosity and support have made a significant impact on my life, allowing me to focus on my health and well-being without the constant worry of financial strain.
I am truly grateful for your dedication to helping individuals like myself, and I cannot thank you enough for your kindness.”
A Model Other Cities Are Eager to Follow
The medical debt relief strategy adopted by New York is part of a growing national trend. Across the U.S., counties and municipalities are launching similar programs, also partnering with RIP Medical Debt to relieve residents from the crushing pressure of unpaid healthcare costs.
Some notable examples:
- In Cook County, Illinois, officials erased $281 million in medical debt for 150,000 residents.
- In Cuyahoga County, Ohio, the program wiped out $33 million for 40,000 families.
- Connecticut launched a $6.5 million initiative expected to cancel nearly $650 million in debt, offering a return ratio of 100 to 1.
- In Maricopa County, Arizona, a $30 million partnership is projected to eliminate over $2 billion in unpaid medical bills, one of the most impactful returns recorded.
- In New Orleans, Louisiana, $130 million in medical debt was cleared for low-income residents facing long-term financial hardship.
What sets these initiatives apart is their efficiency: relatively small public investments translate into monumental reductions in medical debt. For every dollar spent, tens — even hundreds — of dollars in medical bills are canceled.
Beyond Numbers: The Human Side of Debt Relief
Medical debt remains the number one cause of personal bankruptcy in the United States, often forcing families to choose between paying for care or paying for rent. For many in New York City, this relief isn’t just about financial numbers — it’s about regaining a sense of control and stability.
City officials emphasize that the initiative is about more than just dollars. “People can focus on healing rather than debt,” one NYC Health spokesperson stated during the announcement.
What’s unique here is that the relief is automatic — there are no applications to fill out, no interviews, and no paperwork. Just quiet, invisible help that shows up unexpectedly, wiping away years of worry in a single envelope.
This model, driven by local government in coordination with RIP Medical Debt, shows how targeted municipal action can offer practical relief while federal healthcare reforms remain stalled.
Medical debt continues to affect millions, but programs like this are offering not just help, but hope. As more cities consider joining the movement, the idea that medical care should not lead to financial ruin is no longer a distant ideal — it’s becoming a reality.
