We support Medicaid expansion provisions of the Affordable Care Act (ACA)
Dear Governor Christie:
The undersigned organizations fully support the Medicaid expansion provisions of the Affordable Care Act (ACA). We are sending this letter to strongly urge you to elect this option, which will make about 300,000 uninsured adults, including parents, with income less than 138 percent of federal poverty level newly eligible for Medicaid. The majority of these individuals are low-income working adults in construction, nursing care, child care or other per diem or “temp jobs” in which they do not have access to medical insurance.
The federal match rates applicable to the Medicaid expansion are tied by law to specific calendar years outlined in the Affordable Care Act. If New Jersey provides this expanded coverage starting in 2014, the federal government will provide 100 percent reimbursement for newly eligibles for the first three years (before reducing the reimbursement gradually to 90 percent in 2020 and thereafter), resulting in New Jersey receiving about $2 billion annually in federal Medicaid funds. If we wait, we lose the opportunity to use those federal dollars.
In addition, by adopting the Medicaid expansion, New Jersey will be able to realize savings in Medicaid spending in the upcoming state budget. The federal reimbursement rate for thousands of childless adults and parents currently receiving Medicaid or NJ FamilyCare, which is at 50 and 65 percent respectively, will increase to 100 percent in 2014.
Implementing the Medicaid expansion will also help New Jersey hospitals that serve the low income community by reducing their need for charity care assistance from the state. In that the ACA originally assumed the number of uninsured would significantly decrease once health reform was implemented, the ACA deeply cuts DSH payments. Without Medicaid expansion, the number of uninsured will remain the same, or even increase, but the funds necessary for hospitals to provide that essential uncompensated care will be totally inadequate. The Medicaid expansion will thereby also reduce costs for people with insurance because they will pay less in uncompensated care costs incurred by the uninsured that are shifted to their health plans.
As you know New Jerseyans get less back in the federal taxes they pay than residents of any other state. Adopting the Medicaid expansion provides the opportunity for New Jersey to recoup those federal tax dollars, rather than continue to benefit other states. We think providing health care insurance for New Jersey’s working poor is a better use of these federal tax dollars. And a
recent poll conducted by the American Cancer Society Cancer Action Network showed that voters by large margins in seven states including New Jersey supported expanding Medicaid programs.
Without the Medicaid expansion, low and moderate income New Jersey residents (100 to 400 percent federal poverty level) will finally have an opportunity for affordable health care coverage (through the Exchange), but the lowest income residents (below 100 percent) will have none. This is neither rational nor fair. The Medicaid expansion is a cost effective way to provide health care for the lowest income New Jersey residents (making an annual income of $11,170 for a single person) who will not qualify for the tax credits to purchase insurance through the Exchange.
Finally, federal Medicaid funding will help stimulate New Jersey’s economy and reduce unemployment by creating many health care jobs.
We recognize that New Jersey faces tough decisions in upcoming budget discussions. Adopting the Medicaid expansion is a smart budget choice. There is no down side to adopting the Medicaid Expansion. Some have raised a concern that the state will be “stuck” with the expansion if Congress changes the rules about the reimbursement levels. In response to this concern, CMS specifically stated that if a state covers the expansion group, it may decide later to drop the coverage.
Please take advantage of this historic opportunity to make affordable health care coverage options available to all New Jerseyans.
The undersigned organizations fully support the Medicaid expansion provisions of the Affordable Care Act (ACA). We are sending this letter to strongly urge you to elect this option, which will make about 300,000 uninsured adults, including parents, with income less than 138 percent of federal poverty level newly eligible for Medicaid. The majority of these individuals are low-income working adults in construction, nursing care, child care or other per diem or “temp jobs” in which they do not have access to medical insurance.
The federal match rates applicable to the Medicaid expansion are tied by law to specific calendar years outlined in the Affordable Care Act. If New Jersey provides this expanded coverage starting in 2014, the federal government will provide 100 percent reimbursement for newly eligibles for the first three years (before reducing the reimbursement gradually to 90 percent in 2020 and thereafter), resulting in New Jersey receiving about $2 billion annually in federal Medicaid funds. If we wait, we lose the opportunity to use those federal dollars.
In addition, by adopting the Medicaid expansion, New Jersey will be able to realize savings in Medicaid spending in the upcoming state budget. The federal reimbursement rate for thousands of childless adults and parents currently receiving Medicaid or NJ FamilyCare, which is at 50 and 65 percent respectively, will increase to 100 percent in 2014.
Implementing the Medicaid expansion will also help New Jersey hospitals that serve the low income community by reducing their need for charity care assistance from the state. In that the ACA originally assumed the number of uninsured would significantly decrease once health reform was implemented, the ACA deeply cuts DSH payments. Without Medicaid expansion, the number of uninsured will remain the same, or even increase, but the funds necessary for hospitals to provide that essential uncompensated care will be totally inadequate. The Medicaid expansion will thereby also reduce costs for people with insurance because they will pay less in uncompensated care costs incurred by the uninsured that are shifted to their health plans.
As you know New Jerseyans get less back in the federal taxes they pay than residents of any other state. Adopting the Medicaid expansion provides the opportunity for New Jersey to recoup those federal tax dollars, rather than continue to benefit other states. We think providing health care insurance for New Jersey’s working poor is a better use of these federal tax dollars. And a
recent poll conducted by the American Cancer Society Cancer Action Network showed that voters by large margins in seven states including New Jersey supported expanding Medicaid programs.
Without the Medicaid expansion, low and moderate income New Jersey residents (100 to 400 percent federal poverty level) will finally have an opportunity for affordable health care coverage (through the Exchange), but the lowest income residents (below 100 percent) will have none. This is neither rational nor fair. The Medicaid expansion is a cost effective way to provide health care for the lowest income New Jersey residents (making an annual income of $11,170 for a single person) who will not qualify for the tax credits to purchase insurance through the Exchange.
Finally, federal Medicaid funding will help stimulate New Jersey’s economy and reduce unemployment by creating many health care jobs.
We recognize that New Jersey faces tough decisions in upcoming budget discussions. Adopting the Medicaid expansion is a smart budget choice. There is no down side to adopting the Medicaid Expansion. Some have raised a concern that the state will be “stuck” with the expansion if Congress changes the rules about the reimbursement levels. In response to this concern, CMS specifically stated that if a state covers the expansion group, it may decide later to drop the coverage.
Please take advantage of this historic opportunity to make affordable health care coverage options available to all New Jerseyans.