New York City canceled $135 million in medical debt for 75,000 residents, part of a program for half a million working-class people. The city partnered with Undue Medical Debt to relieve overdue bills for eligible residents without application, aiming to erase over $2 billion in debt on a one-time basis.

Medical debt is a public health crisis, affecting over 100 million Americans with a total exceeding $220 billion. Black and Latino communities are disproportionately burdened. Even those with health insurance struggle to afford care, leading to delays, cutbacks in essentials, extra work, and savings depletion.

26 state and local governments, including Cook County, Illinois, and Connecticut, have launched medical debt relief programs. These efforts promise to eliminate $15.6 billion in debt for over 6 million low- and moderate-income Americans. Undue Medical Debt partners with governments to identify eligible individuals.

To manage medical bills, negotiate with providers, seek income-based payment plans, charity care, and avoid credit card debt. Certified credit counselors can help set up a debt management plan. While government and nonprofit programs provide relief, individuals should understand and explore their options to reduce medical debt.

As efforts like New York City’s spotlight the medical debt issue, individuals can take practical steps to ease the burden. Policy changes and personal planning can help reduce the weight of medical debt and protect finances from future health costs. Understanding options is key to managing medical debt effectively.

Read more at Yahoo Finance: NYC plans to forgive $2B in medical debt for over 500K residents in 3 years. Here’s how other cities are taking action