Medicaid Expansion Would Insure 175,000 New Jerseyans

The Record ( — Thursday, January 10, 2013

By Barbara Williams, The Record

[RELATED LINK: To read the report referred to in this article CLICK HERE]

Jan. 10 — More than 175,000 working adults in New Jersey would have health care coverage if Medicaid is expanded, according to a report released Wednesday by New Jersey Policy Perspective and New Jersey for Health Care Coalition.

People working in low-wage jobs, such as waiters, landscapers and home health workers, could be among those who would qualify for medical coverage under the plan, according to the report. Many of these workers earn minimum wage, are refused full-time hours so their employers don't have to offer health insurance, or work for small businesses that aren't required to provide medical coverage, the report said. Most wait until they are severely ill, then seek treatment in hospital emergency rooms, relying on state-funded or hospital-paid charity care.

Expanding Medicaid is an option states have under the Patient Protection and Affordable Care Act, commonly known as Obamacare. Under the proposal, residents earning below 138 percent of the poverty line — individuals making $15,414 and a family of three with a $26,344 annual income in 2014 — would qualify for coverage.

Governor Christie has given no indication whether he will implement the expansion. There is no deadline for when states must decide; they can opt in at any time, but the uncertainty could affect the state budget process.

Proponents of the expansion say it's a good deal for states because 100 percent of the costs for the first three years will be covered by the federal government. States will then gradually pick up some of the costs until 2020, when they would fund 10 percent. Currently, the state match is 50 percent.

Opponents to the plan say it will ultimately cost the state money it can't afford and won't help residents.

"Medicaid is a broken and costly system, and adding these individuals to the system will make the problems even worse," said Nicole Kaeding, state policy manager with Americans for Prosperity. "And 60 percent of doctors do not accept new Medicaid patients."

Further, Kaeding said, the cost to New Jersey once the state is responsible for 10 percent of the costs will amount to $1.5 billion.

But the authors of the report from New Jersey Policy Perspective, a liberal think tank in Trenton, said the state will receive $10.7 billion in the first five years from Medicaid funds. This will, in turn, create new jobs, especially in the health care industry, they say.

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