You could qualify for $1,000s in medical debt relief—see if yours will be cleared automatically

For many Americans, opening a medical bill can feel like a punch to the gut. Especially for those entering retirement, those statements can turn peace of mind into panic.

But there’s a new ray of hope shining through, erasing medical debt without requiring anyone to lift a finger. And it all starts at City Hall.

A Groundbreaking Move​

In a move that’s making headlines and changing lives, New York City has just erased nearly $135 million in medical debt for more than 75,000 residents. And here’s the best part: there’s no paperwork, no hoops to jump through, and no application process. If you qualify, your debt is simply… gone.

Mayor Eric Adams announced this historic relief effort, calling it a “game-changer” for working-class New Yorkers. The city partnered with Undue Medical Debt, a nonprofit that specializes in buying up medical debt for pennies on the dollar and then forgiving it—no strings attached.

Imagine opening your mailbox and finding a letter that says your crushing medical bills have been wiped clean. That’s exactly what’s happening for thousands of families right now.

How Does It Work?​

Unlike most government programs, this one is refreshingly simple. If you’re a New York City resident earning up to 400% of the federal poverty line (that’s about $60,000 for a single person or $120,000 for a family of four), or if your medical debt is at least 5% of your annual income, you’re automatically eligible. There’s no need to fill out forms or wait in long lines.

Once your debt is cleared, you’ll receive a confirmation letter—no catch, no impact on your credit score, and no tax bill. It’s a true fresh start.

That’s the kind of real-world impact this program is having—lifting the weight of debt so people can focus on what matters most: their health and happiness.

Also read: How one woman used AI to wipe out $12K in debt—and how you can too

The Movement Spreads Nationwide​

New York City isn’t alone in this fight. Across the country, similar programs are popping up, bringing hope to families from coast to coast:

Also read: Are you one of the millions paying Buy Now, Pay Later fees? Discover hidden programs that could erase your debt!

How Does Undue Medical Debt Work?​

You might be asking: how can a nonprofit just “buy up” debt and make it disappear? Here’s the secret: hospitals and clinics often sell unpaid medical bills to collection agencies for a fraction of their value. Undue Medical Debt steps in, buys these debts for pennies on the dollar, and then forgives them—no collection calls, no threats, just a clean slate. It’s a win-win: hospitals recoup some of their losses, and families get a fresh start.

If you don’t live in one of these cities, don’t lose hope. The movement for medical debt relief is growing, and more local governments are considering similar programs. In the meantime, you can check with Undue Medical Debt to see if you might qualify for relief or consider reaching out to your local representatives to advocate for similar initiatives in your area.

Also read: Medical debt might still hurt your credit score—here’s what changed and how to protect yourself

Practical Steps If You Think You Might Qualify​

While most of these programs require no action from residents, there are steps you can take to stay informed:

• Contact participating hospitals or healthcare providers directly to ask about debt relief programs
• Check your state's health department website for announcements about medical debt initiatives
• Keep your address updated with any healthcare providers where you've received treatment
• Save any debt relief notification letters you receive for your records
• Monitor your credit report to see when medical debts are removed

If you're struggling with medical debt that doesn't qualify for these automatic programs, don't despair. Many hospitals are required by law to offer financial assistance programs, and some will negotiate payment plans or discounts if you reach out proactively.

Read next:

• A new effort has erased $6.5 billion in medical debt—here’s what to know
• Energy assistance programs are throwing some seniors a lifeline this winter
• Could a $400 rebate be on the way? Here’s who qualifies—and how to claim it before time runs out

Key Takeaways

• New York City has partnered with Undue Medical Debt to wipe out nearly $135 million in medical debt for over 75,000 residents, without requiring people to apply.
• Eligible New Yorkers—those with incomes up to 400 percent of the federal poverty line or with medical debt at least 5 percent of their annual income—automatically qualify and receive confirmation when their debt is cancelled.
• The city plans to invest $18 million over the next three years to provide one-off relief for up to 500,000 people, aiming to erase over $2 billion in medical debt overall.
• Similar programs have been rolled out in other US regions, with hundreds of millions in medical debt wiped for residents of Illinois, Ohio, Connecticut, Arizona, and Louisiana.

Have you or someone you know been affected by medical debt? Have you received a letter saying your debt was wiped out? Or do you have questions about how these programs work?