N.J. medical community tepid on Medicaid expansion

Advocates for the poor are making their case that New Jersey should expand the ranks of people eligible for Medicaid in what could be the next big decision on how the federal health insurance overhaul plays out in New Jersey.

They say it will save state taxpayers money and give far more low-income people health coverage. But doctors are apprehensive, and hospitals are not pushing hard for the change, which some anti-big government groups oppose deeply.

New Jersey Gov. Chris Christie has not said whether he's willing to let more people be eligible for Medicaid. But many observers expect he'll announce his decision by late February, when he is scheduled to present his state budget proposal. A spokesman for Christie did not comment for this article.The decision is a big one for each state government to make under President Barack Obama's 2010 overhaul of health insurance laws. Originally, states were going to be required to expand Medicaid, the joint state-federal insurance programs for low-income people, or face penalties.

"I'm starting to feel more optimistic to convince him here," said Dena Mottola Jaborska, program director at New Jersey Citizen Action, one of several liberal groups participating in NJ for Heath Care Coalition, which is campaigning for the expansion. "The governor does care about working people who work hard and play by the rules."

But only a small number of non-senior, non-disabled adults with no children qualify for the government-run insurance known as NJ FamilyCare. A single person would have to make less than $2,800 per year to qualify for Medicaid now. As of December, there were 1.3 million people in New Jersey on Medicaid and FamilyCare, including 44,000 non-disabled, low-income adults on Medicaid.

New Jersey Policy Perspective says in its report that most of those who would be newly eligible for an expanded Medicaid system are people working in low-wage jobs in such businesses as food service and landscaping.

In her leanest years, she would have qualified for an expanded Medicaid program. But as it is, she has been without health insurance except for a short period when she was working part-time for $8.75 an hour and paying about $100 a month for a limited plan.

"Everyone's under the impression that everyone has a $50,000-a-year job and it's just not true," she said. "There are so many people out there that need health insurance."

Raymond Castro, the former state human services official who wrote the New Jersey Policy Perspective report, said he believes there will be immediate and lasting savings for the state government, not only because of the larger federal contribution, but also because the state could cut its payments to hospitals that provide charity care to the uninsured. Also, a provision of the federal law would let eligible people be signed up for Medicaid at any time — including at a hospital.

"We've admittedly been delicate with our approach to the issue," said Randy Minniear, a senior vice president at the New Jersey Hospital Association. "By and large, in principle, we do support the concept of expanding Medicaid."

Doctors have reservations, too.

"If we were to expand Medicaid without enough access, it's going to be very difficult," she said.

There's another, blunter criticism of the expansion: The state would eventually have to pay some of the costs of expanded coverage. A study last year found that the expansion would cost New Jersey nearly $1.5 billion from this year through 2022. And if there are not the promised offsetting savings, taxpayers would have to pick up that bill.

"At some time, people have to suck it up and fend for themselves, just like my grandparents did when they came here from Italy," said Lonegan a former mayor of Bogota and a two-time candidate for governor.


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