New Jersey Governor’s Budget Proposal Would Cut Funding for Public Health Insurance Program

New Jersey Gov. James McGreevey's (D) budget plan for the fiscal year beginning July 1 would cut $42.8 million from FamilyCare, the state's public health insurance program, the Bergen Record reports. Despite a campaign pledge to "fully fund" the program, McGreevey said that a multibillion dollar state budget deficit is forcing the cut (Parello, Bergen Record, 4/29). FamilyCare covers children from low-income families, their parents and some childless adults (Kaiser Daily Health Policy Report, 1/10). Taking into account an increase in federal funding for the program, McGreevey's proposed budget would cut the program's funding by 3%, or $10.6 million. The cuts will most impact the portion of the program covering adults. To address the reduced funding, state officials are considering ending coverage for some of the 44,000 adult beneficiaries who do not have children. To qualify for FamilyCare, childless adults must have annual incomes lower than 100% of the federal poverty level, or $8,860 for an individual. About 26,000 of the childless adult beneficiaries have "serious health problems" and are difficult to insure, Department of Human Services spokesperson Cece Lentini said (Bergen Record, 4/29). According to McGreevey, state Health Commissioner Clifton Lacey is examining the possibility of creating a "hospital-based program" to provide health coverage for childless adults (AP/Newark Star-Ledger, 4/30). Lentini said that state officials also are considering reducing the program's benefits, such as dental care, or increasing copayments (Bergen Record, 4/29).