New Jersey Lawmaker Announces Universal Health Care Proposal
New Jersey Senate Health Committee Chair Joseph Vitale (D) on Monday announced a universal health coverage proposal that would require all residents to obtain health coverage within three years, the New York Times reports. About 1.4 million state residents are uninsured (Chen, New York Times, 3/18).
The first phase of the plan would focus on expanding the state's NJ FamilyCare program to provide more coverage for uninsured children and their parents. Also during the first phase, the state would try to overhaul the health insurance market to reduce costs, particularly for small businesses and the self-insured. According to Vitale, the first phase would cost an estimated $28.8 million and would be paid for by redistributing unused state and federal funds that already are allocated for health programs for low-income residents.
In the second phase, the state would continue to enroll residents in FamilyCare and create a self-funded, state-sponsored health insurance plan for all residents, the Philadelphia Inquirer reports. Beneficiaries of the state-sponsored plan would pay for coverage based on family income and size (Lu, Philadelphia Inquirer, 3/18). Subsidized coverage would be available to residents with incomes up to 350% of the federal poverty level (Livio, Newark Star-Ledger, 3/18). According to Vitale, the second phase of the plan would cost an estimated $1 billion and eventually would be funded with savings from a reduction in charity care, as well as premiums from beneficiaries and other sources.
Once the state plan is made available, all residents would be required to obtain some kind of health coverage. After the mandate takes effect, residents could be required to provide proof of insurance when they file their income tax returns, and people who cannot provide proof would be automatically enrolled in the state plan and charged premiums based on their ability to pay.
State House Budget Committee Chair Louis Greenwald (D) -- who, along with several other lawmakers, joined Vitale at a news conference to announce the proposal -- said the plan would not increase taxes (Philadelphia Inquirer, 3/18). Vitale said, "When this is fully operational and every child and every adult has coverage, it will cost us in the range of $300 (million) to $400 million -- a far cry from what we're already spending" (Layton, Bergen Record, 3/18). Supporters of the proposal said that they hope to introduce legislation within the next few days and enact the plan before the July 1 budget deadline (New York Times, 3/18).
Gov. Jon Corzine (D) said that Vitale's focus on providing health coverage to children is "a smart way to start," but he added that "the current fiscal environment limits our ability to do the things we would like to be able to do" (Newark Star-Ledger, 3/18).
