New Jersey: Governor’s Medicaid Proposal Would Shift Costs to New Jersey Taxpayers and Health Care Providers
Governor Chris Christie has announced a proposal to curtail federal funding for Medicaid as part of a per capita cap that would remove $15 billion in federal funds over eight years. The proposal would be the largest Medicaid funding reduction in New Jersey’s history. Governor Christie has also released several proposals to reduce funding for Social Security and Medicare along with Medicaid.
If the state goes through with the proposal on Medicaid, the state would terminate insurance coverage for many current beneficiaries, reduce benefits and increase co-pays for remaining beneficiaries, reduce reimbursement rates for providers, and cut other statewide services. In New Jersey, 44 percent of current Medicaid spending is for services to people with disabilities, for whom a per person cap could result in widespread loss of access to supports necessary to stay in their own homes and communities. Additional reductions to already low reimbursement rates could potentially contribute to shortages in the workforce providing services to people with disabilities, which could have further adverse impact on the ability of service recipients to maintain employment and other community social connections.