Medicaid cuts would be 'direct' hit
Legislators say budget has no room, move bill to find funds
By: Katie Sobko
NorthJersey.com
USA Today Network - New Jersey
..... The state Senate has cleared a bill that would require the state's Treasury and Human Services departments annually to identify state funds available for NJ FamilyCare, evaluate the program and cerate prioritized lists of initiatives to improve the quality of care under the program.
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NJ Family Care is the state program that channels Medicaid coverage to more than 1.8 million New Jersey residents. It covers everything from nursing home care to hospital stays to annual checkups at eye doctors, pediatricians and cardiologists for residents of all ages.
..... The program costs taxpayers $24 billion: 414 billion form the federal government and $10 billion in state funds/
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State Sean tor Paul Sarlo and Senate President Nick Scutari, who sponsored the bill alongside state Senator Angela McKnight, felt that it was important as a means to find out how these funds are being allocated.
..... The vote was largely along party lines, and Republican Budget Officer Declan O'Scanlon clarified that his party was voting against the bill because members viewed it as a "massive expansion of this program" and it "seemed to look for ways to spend more money."
..... Sarlo said he respectfully disagrees with O'Scanlon and doesn't view this bill as a way to expand the program.
..... "I see a billion dollars or more being cut in our Medicaid program, and I will tell you there is no room in the state budget to make that up. That will be a billion dollars across the board," he said. "That's coming. It's coming, and it;s going to hit us direct, and people will lose their services. This state budget will not be able to supplement it."
..... The bill would require Treasury and Human Services to send the governor and Legislature an annual report identifying all unencumbered or unallocated state funds that can be appropriated to the Division of Medical Assistance and Helaht Services for NJ FamilyCare during each fiscal year.
..... The report would evaluate the quality of care received by those enrolled in the program and come up with a list of the 12 most urgent policy changes and legislative actions, along with the cost to implement them. It would also need to include all of the programs that receive Medicaid funding.
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Sarlo said at the top of the meeting that lawmakers from both sides of the aisle have proposed bills for Medicaid enhancements or expansions because it does affect resident all over the state.
..... "There's a lot of uncertainty about what kind of cuts to the Medicaid program there will be," he said, before encouraging legislators to talk to hospitals in their districts because "it will have a significant impact and we will not be able to make up the shortfall."
'Catastrophic impact'
..... Medicaid has garnered the attention of Elon Musk and his Department of Government Efficiency, as a program to cut in an effort to maintain tax cuts for those in higher tax brackets.
..... According to New Jersey Hospital Association CEO Cathy Bennett, cuts would have a :catastrophic impact." One out of every four hospital patients in New Jersey is on Medicaid, she said.
..... That could add up to billions in lost revenue, according to an analysis by the state Human Services Service Department.
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Large hospital networks, including Hackensack Meridian and RWJ Barabbas, could each see anywhere from $144 million to $650 million in losses, and smaller networks such as St. Joseph's Health could face a decline of $35 million to $108 million, the analysis found
..... Katie Sobko covers the New Jersey Statehouse. Email:sobko@northjersey.com.