TRENTON — Gov. Chris Christie's administration today released a long-anticipated outline of how the state proposes to dramatically restructure New Jersey's Medicaid program and cut at least $345 million to help close a deficit. The Department of Human Services expects to save as much as $32.5 million by freezing the enrollment in the Medicaid program and its spin-off for...
Jennifer Velez, commissioner of the Department of Human Services, in a 2010 photo. Today the department released their plan to overhaul New Jersey's Medicaid system.TRENTON — Gov. Chris Christie's administration today released a long-anticipated outline of how the state proposes to dramatically restructure New Jersey's Medicaid program and cut at least $345 million to help close a deficit.
The Department of Human Services expects to save as much as $32.5 million by freezing the enrollment in the Medicaid program and its spin-off for working poor people, New Jersey FamilyCare to all but the lowest-income people, according to a document summarizing the proposal. This is the most controversial element of the department's proposal, that until today did not identify how much money would be saved.
Moving roughly 200,000 people from the more pay-as-you-go plan to an HMO would save a maximum of $40 million. Disability advocacy groups had criticized the proposal, set to launch next month, as a hastily conceived idea that does not take into account people's complex medical history.
Human Services Commissioner Jennifer Velez did not release a statement to accompany the outline, which was provided to the non-partisan Office of Legislative Services.
But at a recent legislative hearing, Velez described the waiver as “an opportunity for the state to preserve the safety-net for the most at-risk populations – children, the elderly and individuals with disabilities.''
"This is not the first time the state has exercised a freeze in enrollment to contain costs in difficult budget years,'' Velez said, alluding to Gov. James E. McGreevey's decision to halt adult enrollment in 2002. "The Medicaid expansion category for adults is the only category of coverage we can adjust without impacting the state’s very generous eligibility levels for children – which we are committed to maintain.”
The biggest share of the savings, $200 million, comes from extra money the state expects to get from the federal government to provide health and housing services to people with disabilities.
The proposal, known in government parlance as the "comprehensive Medicaid Waiver" must be approved by the federal government. Human Services officials say they've had productive conversations with the U.S. Centers for Medicare and Medicaid Services and expect to formally submit the application later this month. Officials say they expect a response by the end of the year.
Christie's budget also calls for additional $244 million in Medicaid savings that does not require federal approval, according to the Department of Human Services. New Jersey would be counting on the federal government to provide $95 million in additional reimbursements.
New Jersey's Democrats in Washington wasted no time panning the proposal, which would result in preventing 93,000 adults from getting health care, according to an estimate from New Jersey Policy Perspective, a left-leaning think tank.
“The state is effectively telling these families to wait until 2014 to get coverage again as part of the new health insurance law,” said Sen. Robert Menendez (D-N.J.). “Unfortunately, there is no such thing as a waiver for getting cancer. Diabetes treatment can’t wait for three years. These families will still face the same health threats, just without any health coverage.''
Rep. Frank Pallone (D-N.J.), who sponsored the federal law that enabled the state to create FamilyCare, an off-shoot of Medicaid for working poor families, said the costs and patients "won't go away.''
"The state will pay a heavy price in many ways if these cuts are approved. The costs won't go away. They will just be shifted to emergency rooms and uncompensated care, which we all pay for," Pallone said.
There are 1.3 million people enrolled in the Medicaid/New Jersey FamilyCare programs.