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Legislative bills

Medicaid Cuts Loom Large for New Jersey, Leaving Patients in Limbo

Strategic Insights

— 1 min read

As the wait begins for Valerie Brown, a New Jersey resident battling lung cancer, the potential cuts to Medicaid funding under a massive bill passed by the House on May 22 have left patients in a state of limbo. The bill, which aims to maintain tax cuts, promises to have far-reaching consequences for the low-income program, affecting over 7 million people nationwide and 1.8 million in New Jersey. The state would receive $3.6 billion less in annual funding, forcing about 20% of residents enrolled in NJ FamilyCare, the state's Medicaid program, to lose coverage.

Key Takeaways:

  • Over 1.8 million New Jerseyans depend on Medicaid, a government medical insurance program for low-income people, which would see a major cut in funding under the massive bill passed by the House on May 22.
  • More than 7 million people would lose Medicaid coverage over the next 10 years if the bill becomes law, according to the Congressional Budget Office.
  • New Jersey would receive $3.6 billion less in annual funding, forcing about 20% of residents enrolled in NJ FamilyCare to lose coverage.
  • Those still eligible would face new paperwork and bureaucratic hurdles designed to kick them off Medicaid.
  • The bill would implement temporary tax breaks for tipped wages and overtime, create a new temporary deduction for the interest on loans for American-made cars, and create a new tax deduction for people over age 65.
  • The changes to Medicaid would also include new work requirements for adults enrolled in Medicaid expansion beginning in December 2026.
  • Human Services Commissioner Sarah Adelman called the cuts "inhumane and appalling," because they would force state officials to choose between taking medical insurance away from 46,890 children and paying an estimated $700 million annual federal penalty.
  • The state's Medicaid program costs $24 billion; $14 billion from the federal government and $10 billion in the state's $56.6 billion budget.

Statistics:

  • 1.8 million New Jerseyans depend on Medicaid.
  • 7 million people would lose Medicaid coverage over the next 10 years.
  • $3.6 billion less in annual funding for New Jersey.
  • 20% of residents enrolled in NJ FamilyCare would lose coverage.
  • 360,000 people would lose Medicaid coverage in New Jersey.
  • $24 billion cost of the state's Medicaid program.
  • 14 billion from the federal government and 10 billion in the state's 56.6 billion budget.

Sources:

  • NorthJersey.com
  • Congressional Budget Office
  • State Department of Human Services
  • USA TODAY

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