NYC to relieve $2 billion in medical debt for up to 500,000 New Yorkers

NEW YORK (PIX11) -- Do you have medical bills that you just can't pay off? There's a new chance that debt could be forgiven.

On Monday, Mayor Eric Adams announced New York City has teamed up with the national nonprofit RIP Medical Debt to eliminate the debt of up to half a million New Yorkers.

"We're investing $18 million over three years to forgive over $2 billion in medical debt for hundreds of thousands," Adams said.

"Up to 500,000 New Yorkers and their families are going to have their lives changed because of this program because health care is not a luxury, it's not a commodity, it's a right," said Ashwin Vasan, New York City's health commissioner.

There is no application process. If you have medical debt and are struggling, you will be automatically considered.

Allison Sesso, the president and CEO of RIP Medical Debt, said they get data from hospitals about people who cannot pay. Sesso said they then "identify everyone that is 400% of poverty or below, or if the debt is 5% or more of income, we relieve those debts."

The debt is bought up for a fraction of what is owed.

"A lot of hospitals work with us because they recognize that this is an issue that they're grappling with as well," Sesso said.

If your debt has been paid off under this New York City debt relief program, you will get a letter in the mail.