Mayor Adams Cancels Nearly $135 Million in Medical Debt for Working-Class New Yorkers, Celebrates Opening of Eight New Financial Empowerment Centers at Select NYC Health + Hospitals Locations to Help New Yorkers Avoid Future Medical Debt – NYC.gov

Executive Summary

This report details New York City’s initiatives to alleviate medical debt and enhance financial stability for its residents, with a significant focus on their alignment with the United Nations Sustainable Development Goals (SDGs). The city has implemented a two-pronged strategy: a large-scale medical debt cancellation program and the expansion of financial counseling services. These efforts directly contribute to SDG 1 (No Poverty), SDG 3 (Good Health and Well-being), SDG 10 (Reduced Inequalities), and SDG 11 (Sustainable Cities and Communities), facilitated through SDG 17 (Partnerships for the Goals).

Medical Debt Relief Initiative: A Framework for Sustainable Development

Program Overview and Progress

The administration has launched a pioneering program to address the economic burden of medical debt on its citizens. Initial results demonstrate substantial progress toward key development goals.

• Nearly $135 million in medical debt has been canceled to date.
• Over 75,000 New Yorkers have benefited from this relief.
• The initiative is supported by an $18 million city investment over three years.

Strategic Goals and Alignment with SDG 1 and SDG 3

The program’s long-term objectives are designed to combat poverty and improve public health, directly supporting SDG 1 (No Poverty) and SDG 3 (Good Health and Well-being) by removing financial barriers to healthcare access and economic stability.

1. Eliminate a total of $2 billion in medical debt.
2. Provide one-time debt relief for 500,000 working-class New Yorkers.

By relieving debt, the program mitigates a primary cause of bankruptcy, contributing to poverty reduction (SDG 1) and enabling individuals to seek necessary medical care without fear of financial ruin, thereby promoting better health outcomes (SDG 3).

Proactive Financial Empowerment and Prevention Strategies

Establishment of NYC Financial Empowerment Centers

To prevent future medical debt and build long-term financial resilience, the city has expanded its financial counseling infrastructure. This proactive approach is integral to creating a sustainable urban environment.

• Eight new NYC Financial Empowerment Centers have been opened within NYC Health + Hospitals locations.
• These centers, run by the Department of Consumer and Worker Protection (DCWP), provide free, one-on-one financial counseling.
• Services are now conveniently located where residents receive healthcare, integrating financial health with physical and mental well-being.

Contribution to SDG 8 and SDG 11

The Financial Empowerment Centers contribute to SDG 8 (Decent Work and Economic Growth) and SDG 11 (Sustainable Cities and Communities) by equipping citizens with tools for financial stability.

• Services Offered:
  • Developing strategies to reduce debt.
  • Establishing or improving credit.
  • Creating spending plans and increasing savings.
  • Opening safe and affordable bank accounts.

Improved financial health among residents strengthens household economic security, fostering a more resilient and economically vibrant city.

Program Mechanics and Impact on SDG 10 (Reduced Inequalities)

Operational Framework

The debt relief program operates through a strategic partnership without requiring an application from residents, ensuring broad and equitable access.

1. The city partners with the non-profit organization Undue Medical Debt.
2. Undue Medical Debt acquires qualifying medical debt portfolios from healthcare providers and collection agencies at a significant discount.
3. The acquired debt is permanently canceled, and recipients are notified by letter.

Eligibility and Targeting Inequality

The program is specifically designed to address the disproportionate impact of medical debt on vulnerable populations, directly advancing SDG 10 (Reduced Inequalities). National data indicates that Black and Latino communities are significantly more likely to hold medical debt.

• Eligibility Criteria:
  • Household income at or below 400 percent of the Federal Poverty Line.
  • Medical debt equal to 5 percent or more of annual household income.

By focusing on low-income households, the initiative targets systemic economic disparities and promotes greater financial equity across the city.

Collaborative Partnerships for Goal Achievement (SDG 17)

Multi-Stakeholder Collaboration

The success of these initiatives is underpinned by a robust multi-stakeholder partnership, exemplifying the principles of SDG 17 (Partnerships for the Goals).

• Key Partners:
  • Office of the Mayor of New York City
  • NYC Department of Consumer and Worker Protection (DCWP)
  • NYC Health + Hospitals
  • Undue Medical Debt (non-profit organization)
  • Mayor’s Fund to Advance New York City

This collaborative model leverages the strengths of municipal government, the non-profit sector, and public health systems to achieve a scale and impact that would be unattainable by any single entity.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 1: No Poverty

   The article directly addresses poverty by focusing on relieving medical debt, which is described as a “major financial and emotional stressor for families” and the “number one cause of bankruptcy in the United States.” The program targets “working-class New Yorkers” and those with low incomes, aiming to put money back in their pockets and alleviate a significant financial burden that can push or keep families in poverty.

2. SDG 3: Good Health and Well-being

   The core issue is medical debt, which acts as a barrier to healthcare. The article states that debt forces people to “choose between their health and basic needs like food or housing” and can prevent them from re-engaging with the healthcare system “without fear of financial ruin.” By canceling debt and providing financial counseling, the initiative aims to remove financial barriers to care, thereby promoting better health outcomes and well-being.

3. SDG 10: Reduced Inequalities

   The article explicitly highlights the unequal burden of medical debt, stating that it “disproportionately” affects certain groups. It specifies that “Black and Latino communities are 50 percent and 35 percent, respectively, more likely to hold medical debt than their white counterparts.” The debt relief program, by targeting low-income households and by extension these disproportionately affected communities, works towards reducing economic inequality.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 1.3: Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable.

  The medical debt relief program and the establishment of NYC Financial Empowerment Centers are forms of social protection measures. They are designed to provide a safety net for vulnerable populations facing financial hardship due to healthcare costs. The article describes the debt relief program as the “largest municipal initiative of its kind in the country,” demonstrating the implementation of a significant social protection system at the city level.

• Target 3.8: Achieve universal health coverage, including financial risk protection, access to quality essential health-care services and access to safe, effective, quality and affordable essential medicines and vaccines for all.

  The program directly addresses the “financial risk protection” component of this target. By aiming to eliminate $2 billion in medical debt, the city is actively reducing the catastrophic financial consequences of seeking medical care. The article notes that the goal is to ensure “New Yorkers do not fear financial ruin after seeking necessary medical care,” which is the essence of financial risk protection in healthcare.

• Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status.

  The initiative promotes economic inclusion by relieving a debt that disproportionately affects low-income households and minority communities (Black and Latino). By removing this financial barrier, the program helps these groups achieve greater financial stability and allows them to “focus on [their] health and well-being without the constant worry of financial strain,” thereby fostering greater economic and social inclusion.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article provides several specific, quantifiable indicators that can be used to measure progress:

• Total value of medical debt to be canceled: The program’s overall goal is to eliminate “$2 billion in eliminated debt.” This is a primary indicator of the scale of financial risk protection being provided.
• Value of medical debt canceled to date: The article states that “nearly $135 million in medical debt” has already been canceled, serving as a progress marker towards the $2 billion goal.
• Total number of beneficiaries targeted: The program aims to relieve debt for “500,000 working-class New Yorkers,” which measures the coverage of this social protection measure.
• Number of beneficiaries reached to date: Progress is measured by the “over 75,000 New Yorkers” who have already had their debt canceled.
• Eligibility criteria for debt relief: Progress in targeting the vulnerable is measured by who qualifies: those with “household income at or below 400 percent of the Federal Poverty Line” or those with “medical debt equal to 5 percent or more of their annual household income.”
• Expansion of financial support services: The opening of “eight new ‘NYC Financial Empowerment Centers’” is a clear indicator of the implementation of support systems.
• Financial impact of counseling services: The article notes that existing Financial Empowerment Centers have helped New Yorkers “reduce their debt by more than $45.1 million,” an indicator of the effectiveness of these preventative measures.

SDGs, Targets and Indicators Summary

Source: nyc.gov