The New Jersey Department of Health announced Thursday that approximately $90 million in medical debt is being eliminated for nearly 20,000 residents across the state, marking the final round of a medical debt relief program launched in 2023.

The relief is being provided through a partnership between the state’s Office of Healthcare Affordability and Transparency and the nonprofit Undue Medical Debt. Since the program began, New Jersey says more than $1.6 billion in medical debt has been eliminated for nearly 900,000 residents.

Residents included in the latest round do not need to apply or take any action. Those receiving relief are being notified by letters from Undue Medical Debt that began arriving in mailboxes this week.

To qualify, residents had to either have household income at or below 400% of the federal poverty level or have medical debt totaling at least 5% of their annual income. The debt was purchased from participating healthcare providers and other debt holders and then eliminated.

The program was funded through an initial state investment along with federal American Rescue Plan funds. State officials said the available funding has now been fully spent, bringing the debt elimination program to an end.

New Jersey Health Commissioner Dr. Raynard Washington said the state will continue working on broader efforts aimed at reducing healthcare costs and improving access to routine and preventive care.

State health officials said nearly one in seven New Jersey residents in 2024 lived in households where out-of-pocket healthcare expenses, including insurance premiums, exceeded 10% of annual income.