OAN's Brooke Mallory
11:18am – Tuesday, January 23, 2024
Following heavy criticism of his erratic and erratic leadership in the face of an immigration crisis that is draining the city's resources, Mayor Eric Adams said Monday that New York City is currently cutting back on health care for up to 500,000 residents. The company announced plans to eliminate more than $2 billion in debt. To address the “major causes of personal bankruptcy.”
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The city will also cooperate. Rest in peace, medical debt., a charity that pays cents on the dollar to hospitals and debt collectors for large medical debts. This organization targets people who are struggling financially or have low salaries and offers debt forgiveness.
Over the next three years, the city reportedly plans to spend $18 million to help pay for the program.
“Health care costs can be economically devastating for middle-class and working-class New Yorkers,” Adams, D-N.Y., said in announcing the plan. “Working-class families often have to choose between paying for health care and basic necessities.”
Dr. Ashwin Vasan, commissioner of the New York City Department of Health, said people's choices often have disastrous effects on their health.
“It's clear that people who are struggling to pay their medical debt are sicker, more likely to have high blood pressure, and have a shorter life expectancy,” Vasan said.
Medical debt disproportionately impacts low-income households and the underinsured and is the leading cause of bankruptcies in the U.S., according to New York's mayor RIP Medical Debt is working with other major cities to However, the mayor mentioned the debt reduction program: This is the largest initiative of its kind by a local government in Japan.
Alison Sesso, president and CEO of RIP Medical Debt, announced that there will be no application process for the initiative. Those eligible for relief will be notified that the debt has been purchased and canceled by a third party.
“We identify everyone who has a poverty rate below 400% or whose debt is more than 5% of their income and we provide relief from those debts,” Sesso said.
When Astoria resident Drew Mehalek fell on the ice and faced unexpected medical bills, his debts put him on the brink of even greater financial ruin. But RIP did his duty.
“It's such a huge relief. It's no longer dragging behind me like a ball and chain,” Mehrek said.
Despite the city's financial woes, Adams still maintained that New York City would greatly benefit from the $18 million commitment over three years.
“If we can save $2 billion in debt, that $2 billion will trickle out to households that don't fall into the safety net,” Adams said. “They don’t end up in our homeless system.”
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