700K in NJ may lose their Medicaid
Official says it would have 'devastating consequences'
By: Scott Fallon
NorthJersey.com
USA Today Network - New Jersey
..... Billions of dollars lost from federal Medicaid cuts. Up to 700,000 Ne Jerseyans at risk of losing medical coverage. Hospital seeing an enormous hit to their bottom lines.
.....
Those are some of the scenarios Governor Phil Murphy's administration warns may play out in New Jersey with Congress proposing severe cuts to Medicaid - government insurance for low-income earners.
..... Human Service Commissioner Sarah Adelman said the cuts would have "devastating consequences" for state residents and health care providers.
..... Medicaid - which pays for everything from a family's doctor visits to a disabled person's wheelchair or an elderly person;s nursing home care - is one of the costliest government services in New Jersey. It covers up to 1.8 million residents, and its 424 billion budget this fiscal year [2025] is funded with $14 billion from the federal government and $10 billion form the state's $56.6 billion budget.
.....
Propelled by President Donald Trump's massive cost-cutting initiative, Republican leaders in congress are looking to take a large chunk out of Medicaid to pay for initiatives such as border enforcement and to make tax cuts that Democrats say would largely benefit the wealthiest Americans.
..... Democrats, including Murphy, have opposed such cuts.
..... but how much is at stake is still unknown. republicans are walking a political tightrope. Much of Trump's support has come from low-income congressional districts where many residents rely on Medicaid. that has put some Republican representatives in a tenuous position: support the head of your party and face potential backlash form your constituents.
..... Trump has delivered mixed messages. In an interview with Fox News last week, [02/20/2025]
he said, "Medicare, Medicaid - none of that stuff is going to be touched."
..... But a day later, Trump endorsed the House Republicans; resolution that calls for deep cuts, writing on social media that Congress needs to pass the House budget and "move all of our priorities to the concept of ONE BIG BEAUTIFUL BILL.'"
..... In a 17-page memo published late Friday [02/21/2025] on its website, New Jersey Department of Human Services modeled how various cost-cutting and eligibility scenarios being discussed in Washington might play out in New Jersey during the next fiscal year, [2025] which begins July 1.
Cuts of $2.2B to $5.2B in NJ
..... Cuts to different Medicaid programs might range from a est-case $2.2 Billion federal cut for New Jersey to a worst-case $5.2 billion reduction.
.....
Human Services officials are also preparing for a scenario in which Congress gives states a set amount of money and anything over that would have to be picked up directly by New Jersey taxpayers, or the services would not be provided.
..... Congress could also lower the income eligibility requirements of Medicaid recipients, cutting costs by forcing those above the new income threshold out of the insurance plan.
..... Supporters say stricter work requirements would root out those who could pay for private insurance or get an employer-based plan. Critics say ti could affect those with mental or physical disabilities, caretakers for the infirm and others who legitimate can not work.
..... Murphy administration officials and lawmakers will have OT see what happens in Washington before deciding where to scale back on Medicaid services in the state.
In pact on hospitals?
..... State officials said the cuts would hurt the bottom line at hospitals across the state, including may networks with a large presence in North Jersey. they include:
* RWJBaranabs: $205 million ti $650 million.
* Hackensack Meridian: $144 million to $456 million.
* St. Joseph's Health: $35 million to $108 million.
* Atlantic Health: $32.5 million to $103 Million.
* Holy Name Medical Center: $11 million to $35 million.
* Englewood Hospital: $13 million to $41 million.
* The Valley Hospital: $6 million to $18 million.
... This article contains information from USA Today.