New York City plans to wipe out $2 billion in medical debt for 500,000 residents

NEW YORK (AP) — New York City Mayor Eric Adams says the city intends to wipe out more than $2 billion in medical debt for up to 500,000 residents. The city is working with RIP Medical Debt, a nonprofit that buys medical debt in bulk from hospitals and debt collectors for pennies on the dollar. Under the program, the city will spend $18 million over three years. The mayor said medical debt is the No. 1 cause of bankruptcy in the United States. He called the debt relief program the largest municipal initiative of its kind in the country, though RIP Medical Debt has worked with other municipalities.