More Hispanic and Asian Children Uninsured Likely Due to Chilling Effect

To read a PDF version of the full report, click here.


The well-being of New Jersey families relies on their access to high-quality, affordable health coverage, which should be easy to obtain without fear. This is a challenge, however, for legal immigrants and citizens who live in mixed-status households (where at least one family member is undocumented) due to federal policies that penalize immigrants who enroll in NJ FamilyCare (NJFC). Last year, the Trump administration proposed an expansion to the “public charge” rule that would deny green cards and various visas to certain immigrants if they are enrolled or were deemed likely to enroll in a safety net program, including Medicaid. Despite the overwhelming public comments opposing the change, it was scheduled to take effect on October 15, 2019 until it was enjoined by multiple federal courts.

While the rule change has yet to be implemented, it has already had a chilling effect on legal immigrants and citizens in mixed-status households who are now dropping out of or not applying for public health coverage for fear of retribution. Last year, one in seven adults in immigrant families nationally reported that they or a family member did not enroll in a public benefit program because of the proposed public charge rule.[i] The new 2018 census data shows a steep increase in the number of uninsured Hispanic and Asian children in New Jersey, further demonstrating the enormous harm of anti-immigrant policies here in the Garden State.  

More Uninsured Asian and Hispanic Children

Immigrant and citizen children in mixed-status households may have been harmed the most by the Trump administration’s anti-immigrant policies, especially as it concerns health coverage. Over the last year, there is a stark difference in the change in coverage for kids who are White or Black and kids who are Asian or Hispanic (Asian and Hispanic residents in New Jersey represent 85 percent of all immigrants).

While the total number of uninsured children remained about the same in New Jersey, it decreased by 3,591 for White and Black kids and increased by 2,621 for Asian and Hispanic kids. This is consistent with national trends as well. For example, the national uninsurance rate for Hispanic children increased significantly to 8.7 percent in 2018 from 7.7 percent in 2017.[ii]

Many children are harmed by the public charge rule even if it does not apply to them, as their parents do not always know this. The rule is complicated and strikes fear,[iii] which understandably has a chilling effect on many immigrant and mixed-status families. The chilling effect extends to children who are citizens as they can be living in households where another family member is an immigrant. The loss in health coverage for Hispanic and Asian kids is alarming because they already represent 54 percent of all uninsured children.

Historic Drop in Enrollment for Children in NJ FamilyCare

The increase in the number of uninsured Hispanic and Asian kids mirrors national trends and helps explain the major decrease in child enrollment in NJFC in 2018.[iv] Enrollment for children decreased by a startling 30,000 in 2018 from the peak of May to December. While the low unemployment rate during that time is a factor, researchers have concluded that the drop is too large to be explained by falling unemployment alone.[v] The new census data show that another cause is likely that parents are not enrolling their kids in or are dropping out of NJFC because of federal anti-immigrant policies that incite fear and mistrust among Hispanic and Asian families.[vi]

Drops in Enrollment Result in Lost Federal Funds and Higher Charity Care Costs

As result of this decrease in enrollment for kids, New Jersey is losing about $5 million in federal matching funds every month compared to the peak in May 2018.[vii] This will also have an economic impact because lost federal funds will result in lost jobs. Furthermore, hospitals are incurring $8.5 million in charity care costs to treat uninsured kids.[viii] This causes higher costs for taxpayers because part of charity care costs are reimbursed with federal and state funds. It also harms hospitals because the reimbursement they receive only defrays about half their full costs.[ix] 

If Trends Continue, the Uninsurance Rate for Children Will Increase in 2019

Even more alarming, the decrease in enrollment for children is likely to be even greater in 2019 based on current NJFC enrollment trends. As of August 2019, enrollment decreased to 780,000, the lowest level in approximately five years. Thus, this problem will likely only get worse and could result in the total uninsurance rate for kids rising significantly in 2019 for the first time since the Affordable Care Act was implemented, just as it already did at the national level in 2018.

Public Health Coverage for Immigrants Decreased Sharply in 2018

The census also provides data on enrollment in all public health coverage programs based on citizenship for all New Jerseyans regardless of age.

Most likely this decrease is in NJFC because the only other large public health program is Medicare which has very stable enrollment. The percent of New Jerseyans with public health coverage remained about the same for native born and naturalized citizens but decreased by a startling 14 percent for immigrants. That meant there were 23,000 fewer immigrants enrolled in public health coverage in 2018 compared to 2017. 

This decrease is particularly disturbing because immigrants already have the highest uninsurance rate compared to citizens in 2018 (31 percent vs 4 percent).

New Jersey has the third highest share of immigrants in the nation, and immigrants represent 41 percent of the state’s uninsured. This is the main reason why New Jersey scores near the national average in the uninsurance rate, in sharp contrast to other positive measures that New Jersey ranks very high in like median income and a low poverty rate. New Jersey can’t hope to become a top state in health coverage, much less achieve universal health coverage, without covering more immigrants.

Urgent Action Needed

Immigration policy may be set at the national level, but there are proactive steps the state can take to mitigate the harm caused by the Trump administration. Some of these actions have already been taken, such as the state opposing and suing the federal government on the proposed public charge rule. In addition, the state is expanding outreach for the marketplace starting November 1, 2019, which should help in enrolling more immigrants. Starting in 2021, the state will also take over all the operations of the marketplace, which has been run by the federal government.

It will be critical that the state develop targeted strategies to reach Asian and Hispanic immigrants. The state needs to improve outreach to make sure immigrants are fully aware of the proposed public charge rule, which is currently stuck in the courts. The rule will only directly affect a relatively small number of immigrants, but each immigrant will need to weigh the risks and benefits to themselves and their family in deciding whether they want to apply for NJFC and other safety-net programs. 

To address this problem, the state should enact legislation that makes all children eligible for NJFC regardless of immigrant status and allocates outreach funding to organizations that have the trust of immigrants to reach and enroll more children in NJFC. Administrative barriers to enrollment in the Child Health Insurance Program (CHIP) portion of NJFC should be eliminated, like premiums which are the second highest in the country.  In addition, the state requires that children must be uninsured for 90 days before they can be eligible for CHIP, a needless restriction that should also be dropped.

Taking proactive steps to insure all kids—regardless of where they were born—will make New Jersey’s children healthier and save the state money on charity care costs. New Jersey cannot afford not to enact these reforms.

End Notes


[i] Hamutal Berstein, et al, Avoiding Routine Activities Because Of Immigration Concerns, Urban Institute, July 24, 2019, https://www.urban.org/research/publication/adults-immigrant-families-report-avoiding-routine-activities-because-immigration-concerns

[ii] Joan Alker, Why Are There More Uninsured Children and What Can We Do About It? Georgetown University, September 12, 2019, https://ccf.georgetown.edu/2019/09/12/why-are-there-more-uninsured-kids-and-what-can-we-do-about-it/

[iii] Ibid 1, Berstein, et al

[iv] Georgetown University , Child Enrollment in Medicaid and CHIP, May 2019, https://ccf.georgetown.edu/wp-content/uploads/2019/09/Child-Medicaid-CHIP-Enrollment-Dec-2017-May-2019.pdf

[v] Matt Broaddus, Research Note: Medicaid Enrollment Decline Among Adults And Children Too Large To Be Explained By Falling Unemployment, Center On Budget and Policy Priorities, July 17, 2019, https://www.cbpp.org/research/health/research-note-medicaid-enrollment-decline-among-adults-and-children-too-large-to-be

[vi] Samantha Artiga, Estimated Impact Of Final Public Charge Inadmissibility Rule on Immigrants and Medicaid Coverage, September 18, 2019, https://www.kff.org/disparities-policy/issue-brief/estimated-impacts-of-final-public-charge-inadmissibility-rule-on-immigrants-and-medicaid-coverage/

[vii] Calculated based on estimates in Governor Murphy’s FY 2019 State Budget.

[viii] New Jersey Department of Health estimates per OPRA request, 2019.

[ix] New Jersey Hospital Association, 2018 Economic Activity Reporthttp://www.njha.com/media/541893/2018-Economic-Impact-Report.pdf

New Proposed Rule Threatens the Future of Medicaid

The Trump administration’s most recent attack on Medicaid could hit New Jersey harder than any other state in the nation. Quietly released in July, the proposed rule change would reduce access to medical care for up to 1.7 million seniors, children, people with disabilities and low income workers who must rely on this program as their only source for health coverage. The proposal would repeal the current requirement for states to monitor whether the Medicaid reimbursement is sufficient to ensure enough doctors are participating in Medicaid to provide adequate access to medical services. This will create a major incentive for states to cut reimbursement levels and divert those savings to other state projects unrelated to health care. 

The proposal is a greater threat in New Jersey because the state already has the lowest percentage of doctors in the nation who are willing to participate in Medicaid (39 percent), and it’s reimbursement for all services, as a percentage of the Medicare rate (65 percent), is ranked second lowest in the nation. The proposal will harm most health care providers, but it could have an even greater impact on hospitals because the research shows that when consumers have less access to primary care, they end up in the emergency room and drive up charity costs which impacts everyone.

Unfortunately, this is another example of the Trump administration taking administrative action to enact unpopular policies rejected by Congress. The Trump administration has already approved waivers for states to cap Medicaid funding and enacted draconian work requirements, the latter of which has already reduced enrollment substantially even for people who work. The administration has also asked states to submit proposals to block grant Medicaid, even though that was specifically opposed by Congress as part of legislation to repeal the Affordable Care Act. Unless Congress or the courts overturn this rule and previous administrative actions, the future of the entire Medicaid program is under threat.

Consumers and providers who are concerned about this proposed rule must have their comments in to the Centers on Medicare and Medicaid Services by September 13, after which the administration can make it final.  

Proposed regulation text:
https://www.federalregister.gov/documents/2019/07/15/2019-14943/medicaid-program-methods-for-assuring-access-to-covered-medicaid-services-rescission

State-Based Exchange Will Ensure Health Care is Affordable

Governor Murphy unveiling a package of bills to create and fund a State-Based Exchange at a roundtable event in Paterson on May 31, 2019. Photo by Edwin Torres / Office of the Governor.

Earlier today Governor Phil Murphy and lawmakers announced a package of bills to establish a fund a State-Based Exchange for health insurance. The proposals would uphold protections of the Affordable Care Act and give the state more flexibility in determining what plans are offered and how the enrollment process works. In response to today’s announcement, NJPP releases the following statement.

NEW JERSEY POLICY PERSPECTIVE HEALTH POLICY DIRECTOR RAY CASTRO 

“The creation of a State-Based Exchange is welcome news to hundreds of thousands of New Jerseyans whose health care has been threatened by the Trump administration and his enablers his Congress. While the federal government seeks to eliminate essential health benefits and critical protections for patients with preexisting conditions, New Jersey is responding in big ways to ensure health care remains comprehensive and affordable.

“With a state run marketplace, New Jersey can go beyond the minimum requirements in the Affordable Care Act to create a better experience for over 600,000 health care consumers. States that have their own marketplace have been more effective in making plans more affordable, promoting more transparency and accountability, enrolling more consumers, and offering more choices. Since 2016, health care enrollment dropped by 3.7 percent in states that use the federal marketplace while state marketplaces experienced an increase in enrollment of 0.9 percent.

“Positive benefits from a state marketplace should be noticeable to consumers in the first year of implementation as the open enrollment period will double from six weeks to twelve weeks. The state marketplace will also provide more robust outreach to ensure residents are aware of their coverage options. However, to achieve the full promise of a state marketplace, the state should establish the more ambitious goal of further reducing the number of uninsured New Jerseyans, which stands at the unacceptable level of 700,000. New Jersey should follow best practices adopted by other states and supplement federal premium subsidies with state subsidies, provide health coverage through buy-in programs for those not eligible for subsidies, and make creative and efficient use of existing federal funding. While the challenges are many, the opportunity is almost limitless.”

# # #

It’s Time for All Kids Health Coverage

To read a PDF version of this report, click here.


The best investment a state can make is in its children, yet New Jersey is falling short in one of its most effective childhood health programs, the Child Health Insurance Program (CHIP). With the help of the Affordable Care Act, New Jersey has reduced the uninsurance rate by about a third since 2013.[1] Currently, about 800,000 children receive comprehensive quality health coverage in NJFC (which consists of  both Medicaid and CHIP), which represents one in three children in the state.[2] The uninsurance rate is now so low that New Jersey is in a position where it can realistically achieve a goal that would have been unheard of only a few years ago: universal health coverage for kids. 

That means more healthy children and a lower cost for taxpayers by preventing costly health problems later in life. The research is clear that coverage causes a reduction in adverse health outcomes for children, such as poorer health; avoidable hospitalizations; delayed prescriptions; less access to care from a specialist; newborn complications; no regular physician; unmet prescription needs; fewer visits to the emergency room; and death.[3] The research also shows major social benefits, such as fewer school absences[4] and higher graduation rates;[5] better jobs when these kids become adults;[6] as well as less medical debt and bankruptcies for the family.[7]

Assuring affordable health coverage for all kids is a historic opportunity that must not be wasted, but to meet this laudable goal, the state needs to overcome the following challenges:

New Jersey Is Still Behind Many Other States in Insuring Children

The state’s uninsurance rate dropped quickly from 2013 to 2015 (5.6 percent to 3.7 percent), but has remained flat for three years. In total, 78,000 children remain uninsured in New Jerseyand as many as 40 percent are not eligible for current programs.[8] Nineteen other states are doing better at insuring children than in New Jersey, many of which are much less wealthy, like Louisiana, Alabama, and West Virginia.[9] New Jersey’s uninsurance rate is higher than all Northeast states except Pennsylvania and Maine. Clearly NJFC has not lived up to its potential. Massachusetts and Washington, DC have essentially achieved universal health coverage for their children, so it can be done. 

Federal Anti-Immigrant Policies Discourage Enrollment in NJFC

One of the main reasons that the uninsurance rate for children in New Jersey is higher than in many other states is that it has the sixth highest number of children in immigrant families in the nation and many immigrant parents are reluctant to enroll their children in any public program because of federal anti-immigrant policies. Like in many other states, for example, from May 2018 to January 2019, the enrollment of kids in NJFC declined by 33,000, resulting in the lowest enrollment in approximately four years.[10] While much of this decline may be due to the improved economy, it also probably means that fewer children are applying for assistance because of existing and proposed punitive immigration policies from the Trump administration.

Unfortunately, if enrollment trends in NJFC continue to be less than expected, the number of uninsured children will likely continue to remain flat — or actually go up. Of particular concern is the proposed “public charge” rule that could result in the denial of citizenship to legal immigrant parents if their child received Medicaid.[11] There are an estimated 150,000 citizen children in NJFC who have non-citizen parents who could be affected by the proposed public charge rule, which could result in between 22,500 to 52,500 children losing coverage.[12]

NJFC’s systemic outreach to schools is broad-based and not based on immigration status. New Jersey relies mainly on working with public schools to reach all uninsured kids, but other states have made extensive use of contracts with community-based organizations that have the trust of the Latino community to reach these families or have used evidence-based strategies, such as parent mentoring programs that employ the parent enrolled in Medicaid or CHIP to do the outreach.[13]

New Jersey Is Losing Up To $60 Million In Federal Funds for Uninsured Children Already Eligible for NJFC and the Marketplace

Over half (58 percent) of all uninsured children in New Jersey are eligible for, but not enrolled in NJFC — which has an income limit of 355 percent of the federal poverty level — and in the Marketplace, which has an income limit of 400 percent of the federal poverty level. That means most of them are eligible for coverage that is matched by the federal government at 50 percent in Medicaid and at least 65 percent in Child Health Insurance Program (CHIP). If New Jersey enrolled all these children, it would receive $60 million in federal matching funds.[14] Any new federal funds would increase economic activity in New Jersey because they have a multiplier effect since they come from outside the state and create new jobs.

Major Racial and Ethnic Health Disparities in Covering Children

Health equity means that every child should have an equal opportunity for good health regardless of the color of their skin. Unfortunately, that is not the case in New Jersey, as indicated by the uninsurance rates of children. The uninsurance rate for White kids is 2.2 percent. The rate for Hispanic children is three times higher, at 6.3 percent, while the rate for Black children is two and a half times higher, at 5.1 percent.

This data illustrates a disturbing reality in New Jersey — one of the most affluent states in the nation — as nearly three quarters (71 percent) of all children who are uninsured are children of color. In raw numbers, that means that 35,000 Hispanic children are uninsured, as are 15,000 Black children, and 5,000 Asian children, while only 21,000 white children are uninsured. We know that these inequities not only harm people of color when they are children, but when they grow up as well. For example, Black New Jerseyans die nearly five years earlier than white New Jerseyans. 

Children from Lower-Income Families Are Much More Likely to Be Uninsured Than Wealthier Kids

Wealthier children in New Jersey are more than five times more likely to be insured than poor kids. Whereas the uninsurance rate for kids above four times the poverty level is only 1.5 percent, the uninsurance rate for kids below the federal poverty level is a staggering 8.7 percent. These children meet the income level for Medicaid (138 percent of the federal poverty level) which provides comprehensive benefits and no cost sharing, although some of them may not be eligible. 

Health Coverage for Kids Often Depends on Where They Live 

A child’s health should not depend on where they live, but that is often the case in New Jersey. Cumberland County has the highest uninsurance rate at 6.3 percent, which is four times greater than wealthy Morris County, which has the lowest rate at only 1.5 percent. Unlike some other states, counties in New Jersey do not provide health coverage for uninsured kids, so the only way they can obtain public coverage is through the state’s program, NJFC. The uninsurance rate for kids in Morris County is already near universal health coverage, but that is not nearly the case in other parts of the state, especially in other much less affluent counties with higher unemployment rates.

CHIP Premiums are Among the Highest in the Nation

New Jersey’s maximum premium ($152 a month) in CHIP is the second highest premium in the nation for families above 300 percent of the federal poverty level, the second highest (tied with New York at $90) above 250 percent of the poverty level, and the fourth highest ($45 a month) above 200 percent of the poverty level.[19] These high costs are especially problematic in New Jersey because the state has one of the highest costs of living in the nation, especially for housing, so these families have little left in disposable income for premiums. This policy is completely inconsistent with Medicaid in New Jersey, which does not charge any premiums. Twenty-one states do not charge any premiums.

Further, these exceptionally high costs are even worse than they appear, as New Jersey does not vary premiums by family size. For example, the maximum premium in New York for families above 300 percent of the federal poverty level is $135 a month, but for one child it is only $45. Missouri, Vermont and Washington all vary their premiums by family size.

Waiting Periods in CHIP Cause 90-Day Gaps in Coverage 

Unlike 36 other states, New Jersey also requires that children must be uninsured for 90 days before they can enroll in CHIP if they leave employer-based coverage, which is the maximum allowed under federal law. The state does allow exceptions to the 90 days if they leave employer coverage through no fault of their own. Other than New Jersey, Maine is the only state in the Northeast that requires a waiting period. There is a growing recognition among states that this requirement simply creates another gap in health coverage. Within the last five years alone, at least 24 states have eliminated their waiting periods and two states moved all their children in CHIP into Medicaid, which does not require a waiting period.[20] States surrounding New Jersey that ended their waiting periods entirely are New York, Pennsylvania, Delaware, Connecticut, and Maryland. 

Many Middle-Income Children Are Denied Coverage in CHIP

Citizen children who exceed the income eligibility level for NJFC at 355 percent of the federal poverty level and for the Marketplace at 400 percent of the federal poverty level are also denied any subsidized health coverage. There are 14,600 such children in New Jersey, which represents 19 percent of all the uninsured children. Technically they should still be eligible for CHIP because state law requires the establishment of a buy-in program that allows consumers to purchase the full cost of insurance at reduced rates. Such a program was in operation until 2010, when the Christie administration decided that they would not make the changes that were needed to make the plans compliant with the essential benefits that were required in the Affordable Care Act. 

However, Congress has granted states new flexibility that will make it easier to administer a new program at lower rates. The savings to the consumer could be major with no cost to the state. The cost to insure a child in the private market is about twice the cost for coverage in CHIP.[21]

Unauthorized Immigrant Children are Ineligible for NJFC

There are about 17,000 undocumented, uninsured immigrant children in New Jersey who are also ineligible for NJFC under state law. These children represent 23 percent of all uninsured kids in the state. All six states and DC that have covered undocumented kids have lower uninsurance rates than in New Jersey. These states recognize that these children did not choose to live in this country — and they get sick just like any other kid. Ironically the state requires that they attend school and will pay for that education along with the local governments, but the state will not fund their health coverage. This investment in their education would be much more effective if these kids had health coverage as they would spend less time home sick or in school getting their classmates sick, too. 

Recommendations

While these challenges are significant, there are common sense solutions that will cost little to implement yet could be a game changer in making affordable health coverage available to every child in New Jersey. Given that so many children in New Jersey are currently still without any health coverage, the steps below should be taken as soon as possible. All costs are annualized; State FY 2020 costs would be about half these estimates assuming an implementation date of January 2020 (half the fiscal year).

Develop Better Strategies to Reach More Uninsured Children

  • Earmark funding for outreach on a permanent basis. This will allow the state to conduct the targeted and intensive outreach necessary to enroll the remaining uninsured. This funding would also be used to research where underserved children live. 
  • Focus outreach efforts on creating a permanent infrastructure of local organizations (including faith-based) that the community trusts which can effectively reach children with barriers to enrollment.
  • Authorize a parent mentoring program which has been shown to be more effective than traditional methods to insure Latino kids, improve health outcomes and increase employment for parents.
  • Authorize funding for community-based demonstration projects, in cooperation with public health agencies, schools and other local entities, to test various ways to provide health care for children of color and immigrant children who are unlikely to enroll in NJFC.

State Cost: $1 million for outreach, which could obtain up to another $1 million in federal matching funds and $1 million for demonstration projects, which may be eligible for federal funding depending on how they are structured.  

Remove Major Administrative Barriers to Health Coverage

  • Consistent with Medicaid and all other families below 200 percent of the federal poverty level in CHIP, eliminate all premiums to other families in CHIP. 
  • Like 36 other states, do not require that a child wholeaves employer-based healthcoveragemust be uninsured for 90 days before enrolling in CHIP.  

State Cost: Eliminating premiums would result in lost collections of up to $28 million annually in CHIP which would be offset set by $22 million in federal matching funds resulting in a state cost of $6 million  (this would rise to $10 million in the future as the federal CHIP matching rate gradually decreases to 65 percent). This does not take into account substantial administrative savings that would be achieved and that some of those collections would continue for co-payments which would not be eliminated. Ending the 90-day waiting period would increase enrollment by about 1,500 and cost about $900,000 in state funds which would be matched with $2.9 million in federal funds based on the experience of many states that have abandoned the waiting period.[22] This change would likely create administrative savings. 

Cover Those Children Who Are Currently Ineligible For NJFC

  • Reinstate and improve the buy-in program for families above 400% of the federal poverty level as long as they do not have coverage availabletothem for less than 9.5 percent of the family income similar to ACA policy,with the goal of making it as seamless and cost-effective as possible and open to more than one insurer. 
  • Authorize the state to require any or all the carriers to participate in the buy-in program as a condition for continuing to participate in NJFC.
  • Repeal any eligibility restrictions in NJFC based on immigration status.
  • Strengthen the rules for confidentiality to apply to all information relating to the administration of CHIP and Medicaid and allowing the state to withhold information from the federal government on children who receive health coverage at all state cost and where such sharing of information may not be in the best interest of the child. 

State Cost: There is no cost for the buy-in because the parents would pay the full cost in their premiums and any administrative costs or costs associated with any possible adverse selection. It would cost about $10 million to make uninsured unauthorized children eligible assuming a 25 percent participation rate which does not consider reduced costs from a decrease in the spread of infectious diseases in schools in addition to other health and social savings outline earlier. Further, the federal government would still be responsible for paying the full cost for hospitalization which could reduce the above estimate significantly.   

Improve Transparency and Accountability

  • Require that the work group, authorized under state law that advises the Department of Human Services on ways to improve outreach, meet at least annually.
  • Require the Department to submit an annual report to the legislature on actions it has taken and their results to provide affordable quality health coverage for all children in New Jersey and the extent to which coverage disparities have improved based on income, race/ethnicity, and geography.

State Cost: Insignificant administrative costs.

Possible Revenues

The $19 million total annual cost for all these recommendations ($9.5 million in SFY 2020 assuming a January 2020 start date) is statistically insignificant compared to a $15 billion budget for NJFC (the state cannot even project total NJFC cost from one year to the next within this level of accuracy). Thus, they should be funded with general revenues.

However, if additional revenues need to be identified for this expansion, it is likely that the savings which will occur as a result of the sharp drop in the child enrollment in NJFC due to existing and proposed federal anti-immigrant policies and a better economy could be more than sufficient to fund this proposal as would part of the revenues that would be generated by the  Corporate Responsibility Fee proposed by Governor Murphy, which is based on the number of employees (and their dependents) who are enrolled in Medicaid at all public cost, or other similar fee.[23]

End Notes


[1]American Community Survey, 2017

[2] Center on Budget and Policy Priorities, Medicaid Works: A State by State Look, no date, https://www.cbpp.org/medicaid-works-a-state-by-state-look#New_Jersey.

[3] Flores G. Lesley B, Children and US Federal Policy on Health and Health Care: Seen But Not Heard. JAMA 2005;168(12):1155-63. Pediatric.

[4] Howell Trenholm, et al, The Impact of New Health Insurance Coverage on Undocumented And Other Low-Income Children: Lesson From Three California Counties. Journal of Health Care for The Poor and Underserved, 2010.

[5] Cohodes, S, et al, The Effect of Child Health Insurance Access on Schooling: Evidence from Public Insurance Expansion. The National Bureau of Economic Research, 2014.

[6] D. Brown, et al, Medicaid As an Investment In Children: What Is The Long-Term Impact On Health Receipts? National Bureau of Economic Research, January 2015.

[7] M. H. Boudreaux, et al, The Long-Term Impact of Medicaid Exposure in Early Childhood: Evidence From The Program Origin, Journal of Health Economics, January 2016.

[8] American Community Survey, 2017.

[9]Joan Alker, Olivia Pham, Nation’s Progress on Children’s Health Coverage Reverses Course, November 21, 2018, https://ccf.georgetown.edu/2018/11/21/nations-progress-on-childrens-health-coverage-reverses-course/

[10] DHAHS, NJFC Enrollment Statistics, http://www.njfamilycare.org/default.aspx

[11]Georgetown University Health Policy Institute, How Proposed Changes to Public Charge What Impact Children In Immigrant Communities, no date,  https://ccf.georgetown.edu/wp-content/uploads/2018/11/Public-Charge-Fact-Sheet_Final_11918.pdf

[12] Samantha Artiga, Effects of Public Charge Changes on Health Coverage for Citizen Children, KFF, May 2018, http://files.kff.org/attachment/Issue-Brief-Potential-Effects-of-Public-Charge-Changes-on-Health-Coverage-for-Citizen-Children

[13] Glen Flores, et al, Parent Mentoring Program Increases Coverage Rates for Uninsured Latino Children, Health Equity, March 2018.

[14] The average total cost in CHIP and Medicaid for a child is $2,400 which was multiplied times the number of kids who are eligible for NJFC (minus unauthorized immigrant kids). Federal matching is based on 50 percent federal funds in Medicaid and 65 percent in CHIP which was prorated base on eligible kids for each of these programs.

[15] DHAHS, NJFC Enrollment Statistics, http://www.njfamilycare.org/default.aspx

[16] Georgetown University Health Policy Institute, How Proposed Changes to Public Charge What Impact Children In Immigrant Communities, no date, https://ccf.georgetown.edu/wp-content/uploads/2018/11/Public-Charge-Fact-Sheet_Final_11918.pdf

[17] Samantha Artiga, Effects of Public Charge Changes on Health Coverage for Citizen Children, KFF, May 2018, http://files.kff.org/attachment/Issue-Brief-Potential-Effects-of-Public-Charge-Changes-on-Health-Coverage-for-Citizen-Children

[18] Glen Flores, et al, Parent Mentoring Program Increases Coverage Rates for Uninsured Latino Children, Health Equity, March 2018.

[19] Trisha Brooks, Kaiser Family Foundation, Medicaid And CHIP Eligibility, Enrollment, Renewal, And Cost Sharing Policies As of January 2019: Findings from a 50-state Survey, March 2018 http://files.kff.org/attachment/Report-Medicaid-and-CHIP-Eligibility-Enrollment-Renewal-and-Cost-Sharing-Policies-as-of-January-2019

[20] Ibid.

[21] Healthcare.gov

[22] The enrollment changes for all states that ended their waiting period in 2014 was calculated for 2013 and 2015 and compared to all other states. The enrollment changes for states that dropped their waiting period was a .2 percent increase vs. a .5 percent decrease in all other states. That .7 percent difference was applied to the CHIP enrollment and costs in the governor’s 2020 budget. The sources for enrollment rates for all states are https://ccf.georgetown.edu/wp-content/uploads/2013/01/Getting-Into-Gear-for-2014.pdfand https://ccf.georgetown.edu/wp-content/uploads/2015/01/Modern-Era-Medicaid-January-2015.pdf

[23] FY2020 Budget in Brief, p. 6,https://www.nj.gov/treasury/omb/publications/20bib/BIB.pdf

NJPP: State Health Exchange a Win for Working Families

In response to Governor Murphy’s announcement that the State of New Jersey will establish a state-based health care exchange for the year 2021, NJPP Health Policy Director Raymond Castro praised the decision, calling it a win for working families. See below for a complete statement:

RAYMOND CASTRO, HEALTH POLICY DIRECTOR, NEW JERSEY POLICY PERSPECTIVE:

“This is great news for residents who have been struggling to afford their health insurance. It will allow the state the flexibility to provide even better assistance to working New Jerseyans. States with their own exchanges are exploring and implementing innovative ways to reduce premiums and cost sharing for all income levels, with some states even allowing individuals who are not eligible for federal subsidies to purchase plans at much lower rates. These actions, combined with better outreach, will reduce  premiums in the individual marketplace by encouraging healthier New Jerseyans to participate in the Exchange. It should also reverse this year’s decrease in enrollment in the Exchange (from 265,000 to 240,000).

“Remarkably, the state Exchange can be established without additional state funds since insurer fees that otherwise would go to the federal government will stay in New Jersey, where they can be better used to meet the state’s unique needs.

“We also welcome Governor Murphy’s proposal to codify all of the ACA’s major consumer protections in state law. This will ensure that no matter what the Trump administration or Congress does, New Jerseyans will be protected with quality, affordable insurance.”

# # #

Targeted Public Investments Can Improve Health Across New Jersey

To read a PDF version of this report, click here.


By Brandon McKoy, Sheila Reynertson, and Raymond Castro

All New Jerseyans should have the opportunity to lead a healthy life, no matter where they live or how much money they make. State policymakers can foster this opportunity for all Garden State residents by unleashing targeted public investments and making smart budget and tax policy decisions. Lawmakers — as well as health care leaders — need to look beyond traditional investments in health care services and access (think insurance, hospitals, and the like), and consider how the state’s investments in education, housing, and other socioeconomic and environmental factors can eliminate the barriers to a healthy life for New Jerseyans.

While access to health care does play an important role in influencing health outcomes, the conditions and circumstances in which people live, work, learn, and play are very influential in shaping how healthy they feel and how long they live. One widely recognized and validated model, from the University of Wisconsin Population Health Institute, suggests that 80 percent of health outcomes are determined by social and economic, environmental, and behavioral factors; just 20 percent are attributable to health care.[1] Social, economic, and environmental factors are largely shaped by state and federal policy and budget decisions.

Low-Income New Jerseyans Face Unique Barriers to Healthy Living

Healthy people and communities are the building blocks of a strong and thriving New Jersey. Since state policymakers expanded Medicaid in 2013, New Jersey’s uninsured rate rapidly dropped to 8 percent in 2017 from 13.2 percent in 2013. However, a number of barriers prevent many Garden State communities from experiencing good health, including economic instability and hardship; limited access to healthy, affordable food; lack of affordable housing; and exercise options in safe, walkable neighborhoods.

In short, opportunities for Americans to be healthy are not distributed equally. As documented by many studies, there is a direct relationship between income and health with low-income Americans having poorer self-reported health status across all racial and ethnic groups.[2]Meanwhile, a history of structural racism and inequality have helped create especially poor health outcomes for Americans of color, who are more likely to report their health as fair or poor than their White peers. And low-income people of color have the poorest self-reported health status of all, with more than 1 in 5 low-income Black and Latinx people reporting fair or poor health (among racial groups where data are available: Black, Latinx, and White).[3]

In New Jersey, these health inequities can be viewed geographically and demographically, though it’s worth noting that due to historically racist policies in housing and other areas, residential segregation has created a situation with many demographically homogenous geographies across the Garden State. This is not so evident at the county level, but much more so at the ZIP code level.

For example, the share of residents in poor or fair health is just 11 percent in New Jersey’s healthiest county (Morris) and 23 percent in the state’s least healthy county (Cumberland). The disparities across racial and ethnic lines are even more severe: just 11 percent of White and Asian New Jerseyans are in poor or fair health, compared to 20 percent and 32 percent of Black and Latinx New Jerseyans, respectively.[4]

Where one is born and resides in New Jersey can have a big impact on how long one lives. Take life expectancy in the Trenton area, for example. In the 08611 ZIP code, which includes the Chambersburg and Mill Hill neighborhoods, the average life expectancy is 73 years. As one moves north and east of Trenton, people live longer lives: In the 08619 ZIP code, that includes neighborhoods in both Trenton and Hamilton, the average life expectancy jumps 10 percent, to 80 years; and moving farther out to the 08550 ZIP code (the Princeton Junction section of West Windsor), the average life expectancy increases another 9 percent, to 87 years.[5]

This neighborhood-by-neighborhood disparity is not limited to Mercer County, of course. One finds similar results when comparing life expectancy in Camden and Cherry Hill, or in Newark and Montclair, for example.

Overall, New Jerseyans of color are less likely to achieve greater health than their White neighbors — no matter where they live. While close to 60 percent of White New Jerseyans have “good or excellent health,” according to the health equity metrics developed as part of the Health Opportunity and Equity (HOPE) Initiative, less than 45 percent of Black, and less than 35 percent of Latinx, New Jerseyans do.[6]Black New Jerseyans also have significantly lower average life expectancies, and higher rates of infant mortality, than their White or Latinx neighbors.[7]

Building Healthy Communities and Advancing Equity Through Public Policy

 New Jersey policymakers should focus on improving the health and well-being of all the state’s residents by implementing sound policies that lift people out of poverty and boost opportunity, and by leveraging the state budget to support programs beyond investments in health care. Many programs and policies that may not seem health-related on the surface can help build healthy communities and advance equity.

The good news is that New Jersey has already taken major steps in this direction; lawmakers ought to build on that foundation of progress in 2019 and beyond. Here’s how.

Make Health Care Affordable for All New Jerseyans

Polls in New Jersey have shown that health care costs were the number one issue in the midterm elections last year. This is understandable because New Jersey is often ranked among the top states in medical costs. To help address this issue, policymakers enacted a reinsurance program and reinstated the individual mandate that was repealed at the federal level, both of which have and will continue to reduce insurance costs.[8]Nevertheless, much more needs to be done. New Jersey lawmakers should:

  • Make all uninsured children eligible for NJ FamilyCare (includes Medicaid and CHIP) regardless of immigration status and income
  • Establish a commission to oversee and set caps on the excessive costs of prescription drugs
  • Raise Medicaid reimbursement rates for pediatric services that are not sufficiently accessible to low-income children

Boost the Income of Workers and Their Families

In a high-cost state like New Jersey, far too many workers and their families are not paid enough to make ends meet. This creates a wide range of barriers to better health for hundreds of thousands of New Jerseyans who are unable to afford a decent, safe place to live; or who struggle to regularly put nutritious meals on the table; or who must cope with the toxic stress and uncertainty that comes with being unable to secure basic economic security.

To allow all New Jerseyans the chance to live healthy, thriving lives, policymakers must boost the income of these workers and their families on both payday and at tax time.

Raise the minimum wage

New Jersey’s minimum wage in 2019 is $8.85, a woefully inadequate rate that does not help workers meet their basic needs. But thanks to the hard work of NJPP and our allies, the Governor signed into law an increase in the wage to $15 by 2024 for most workers, after which future increases will be tied to inflation. The wage will go up to $10 on July 1, 2019, and then increase to $11 on January 1, 2020. The wage will then increase $1 on January 1st each year until reaching $15 in 2024. This increase will benefit about 1 million of the state’s workers, helping them meet their daily needs and improving our economy.[9]

Some workers are on a separate, slower phase-in schedule. Those who are employed as seasonal workers or at businesses with fewer than 6 workers will get to $15 by 2026, after which there is a provision to bring them to parity with the general wage by 2028. For farmworkers, they will get to $12.50 by 2024, after which the Commissioner of Labor and Secretary of Agriculture will determine whether they should continue to $15. If they decide in the affirmative, farm workers will reach $15 by 2027, after which they will reach parity with the general wage by 2030.

New Jersey’s tipped wage will also get a small increase to $5.13 from the federal tipped minimum wage of $2.13. While this is important, the tipped differential between the tipped wage and the minimum wage will go from $6.72 in 2019 to $9.87 in 2024, a development that we have advised against. NJPP has reported on the unique challenges faced by workers who rely on tips for a majority of their pay, from increased instances of wage theft to a heightened risk of assault and sexual harassment. NJPP and labor advocates will continue to push for the complete phase out of the tipped wage.

Nevertheless, this is a hugely important change that will reverberate throughout New Jersey’s economy. As one of the slowest states to emerge from the Great Recession, and with a population where four out of ten households essentially live paycheck to paycheck and have trouble making ends meet, raising the minimum wage to $15 will be transformative for the state’s workers, families, and businesses.[10]Lawmakers should develop new legislation to phase-out the tipped wage altogether, a move that would significantly improve the economic security and work experience of tipped workers.[11]

Expand tax credits for working families

 Increasing take-home pay for low-paid workers is a critical step toward increasing economic security and the prospects for better health. It is equally critical for policymakers to ensure low-income and working-class families aren’t unduly punished by an upside-down tax code that asks them to pay greater shares of their income to state and local taxes.

The federal Earned Income Tax Credit (EITC) provides low-paid workers with a boost to their incomes in the form of a tax refund. This credit lifts more than 5 million Americans — including 3 million children — out of poverty each year, and reduces the severity of poverty for many millions more.[12]The EITC has been shown to have tremendous widespread benefits, including improved health for infantsand mothers.

New Jersey — like 28 other states and D.C. — has a state EITC that builds on the federal credit and helps even out the tax code and increase opportunity for working families and their children.[13]Children who get additional income through programs like the EITC tend to do better and go farther in school and tend to work and earn more as adults — all of which can have a strong, positive effect on their ability to live healthier lives.

The state EITC in New Jersey is strong, thanks to a longstanding tradition of bipartisan support in the legislature and governor’s office. Last year, policymakers came together and agreed to increase the state EITC from 35 percent of the federal credit to 40 percent over three years. This will put tens of millions of more dollars each year in the pockets of over half a million New Jersey families.

Lawmakers should build on the success of this vital credit by expanding it to an important group of low-paid workers that the EITC largely ignores: adults who aren’t raising children. California, Maryland, Minnesota, and the District of Columbia have already expanded their EITCs to include these workers; hundreds of thousands of low-paid New Jersey workers could receive a much-needed boost to help make ends meet if Garden State lawmakers follow suit.[14][15]

New Jersey policymakers took another big step last year to help the state’s lower-income working families at tax time when they created a new child and dependent care tax credit (CDCTC) for 74,000 families with annual incomes of less than $60,000. It is based on the federal credit, which allows parents and caregivers to deduct up to 35 percent of employment related care expenses from their federal taxes. However, New Jersey caps the CDCTC at a low 50% of the federal credit and is nonrefundable, meaning it will offset the tax due but cannot reduce the tax below $0. Making the CDCTC fully refundable and at a more generous percentage of the federal credit would help the families that need it the most. Half of the states and D.C. currently offer these credits. In twelve states the credits are fully refundable.

Ensure All Workers Have the Ability to Balance Work and Family Needs

Expand paid family leave

 In 2008, New Jersey became the second state to adopt a paid family leave policy. Nearly a decade into the Family Leave Insurance (FLI) program, it’s a clear success, having replaced hundreds of millions of dollars in lost wages for tens of thousands of New Jerseyans who needed to take time off to be with a new child or sick family member.

The existence of this program is a boon for health in New Jersey, particularly for the health of young children. A period of paid leave after the birth of a child contributes to the healthy development of infants and toddlers. There is evidence linking paid leave to better maternal and child health outcomes, like reduced infant and post-neonatal mortality rates; increased breastfeeding, well-child medical visits, and immunizations; and improved health outcomes for children in early elementary school, including reduced issues with maintaining a healthy weight, ADHD and hearing-related problems, particularly for less-advantaged children.[16]

And yet this trailblazing program is falling short of its potential, with serious repercussions for New Jersey families and for the state’s economy. The program is not widely advertised, particularly among low-paid workers. And the wage replacement level and cap on earnings are so low that many workers across the income scale simply cannot afford to take advantage of what should be an important benefit.

In January 2019, legislation to improve and expand the NJ Family Leave Insurance Program passed both houses. The reforms and additional changes in the bill will go a long way to make the program more accessible for working families, especially those struggling to balance work and family caregiving. With the bill on the Governor’s desk, New Jersey is poised to both remove the barriers that have stopped many people from taking paid family leave and increase public awareness of the program so that no one will have to choose work over the time to heal or care for a loved one in need. These improvements will be fully funded by a small increase to current worker contributions, with measurable benefits for families, employers and the state’s economy. Specifically, the new law will:

  • Allow workers to take up to 12 weeks of paid leave
  • Increase the current two-thirds wage replacement
  • Raise the very low cap on earnings while on leave
  • Expand job protections for 200,000 workers employed at companies with 30 to 50 workers
  • Expand the definition of family to include grandparents and grandkids, siblings, adult children, parents-in-law, and chosen family
  • Provide benefits for survivors of domestic violence or sexual assault and to those caring for survivors
  • Increase public awareness with designated funding for outreach

Ensure sound implementation of earned sick leave

Until last year,over 1 million New Jerseyans, mostly in low-paid jobs, couldn’t get paid if they needed to take time off because they were sick. And for many, taking an unpaid day off meant forfeiting their job. Last year state policymakers fixed that problem.

The New Jersey Earned Sick Leave Law — which went into effect on October 29, 2018 — allows employees to accrue 1 hour of earned sick leave for every 30 hours worked, for up to 40 hours each year. This new law is important for workers, particularly low-paid workers, and also for public health.

Earned sick leave has been linked to reducing preventable hospitalizations and emergency-room visits; stopping the spread of illness (particularly foodborne illness, since the restaurant industry is one where workers are least likely to have employer-sponsored access to earned sick days); and more.[17][18]People who come to work sick also get injured more often, particularly in high-risk occupations like manufacturing, construction, healthcare and agriculture.[19]

Being able to take earned sick days is also very important for working parents. When they aren’t allowed to take earned sick days, parents face the difficult decision of caring for themselves and their loved ones or showing up for work, a choice which could extend the duration and increase the severity of an illness.

We have seen evidence right here in New Jersey of how earned sick leave policies can improve health. In Jersey City, which was the first New Jersey municipality to pass an earned sick leave policy in 2014, fewer sick Jersey City employees are coming to work, reducing the risk of illness spreading around the city — an important finding that promotes both public health and a stronger economy.[20]

The New Jersey Department of Labor is now in the process of finalizing regulations which appear to be strong interpretations consistent with Earned Sick Leave Act. They establish clear guidelines for New Jersey employers about their new obligations and employees about their rights to access earned time off to recover from an illness or help a sick loved one. To ensure New Jersey workers and employers learn about the law, regulations will also provide for general outreach and education efforts in multiple languages.

Invest in the Building Blocks of Healthy, Strong Communities

Continue expanding access to high-quality preschool

Universal high-quality preschool prepares children for school and has been found to boost their test scores, high school graduation rates and employment opportunities, as well as their long-term health.

Children who participate in high-quality early childhood programs experience immediate and long-term health-related benefits.[21]They also tend to go farther in school; setting up another wave of positive outcomes, since people with more education live longer, are less likely to die from cancer or heart disease and have better access to health care and insurance.[22]

In 2008, the legislature recognized the value of expanding access to high-quality early education, passing the School Finance and Reform Act to bring preschool to more towns across the state. Still, many New Jersey’s children lack access to early education. That’s because many successive governors and legislatures have yet to deliver on the promise of the 2008 law. That has begun to change, and in last two state budgets lawmakers dedicated over $100 million in additional funding to expand state-funded, full-day preschool for 3- and 4-year-olds to more school districts.[23]As a result, the number of districts providing at least partial access to high-quality public preschool has more than tripled, from 35 just two years ago to over 100 today.[24]

New Jersey policymakers should continue to take steps to fully fund the 2008 law and expand preschool to more districts, but they also ought to think bigger and bolder and work towards implementing truly universal preschool across the entire state, in every district.

Make public transit more accessible, affordable, and reliable

Transportation is a monumental issue for New Jersey, and here more than anywhere else the conversation about transportation must be about public transit. But, despite the fact that nearly a million New Jerseyans use public transportation on a daily basis, the political and policy culture of the state remains dominated by car-centric thinking. This is an enormous problem for the most densely populated state in the nation.

As a result, public transit in New Jersey is in crisis. The infrastructure is decaying. The funding streams are dried up, and the funding structure is broken. As a result, the costs to commuters are rising. And still, the service is getting worse. Low-income residents and New Jerseyans of color are disproportionately harmed by this public transit crisis that is also making our communities less healthy.

This must change. After all, increased use of public transit has a positive effect on health. It improves local economies, helping boost working families and their long-term health. It makes the air cleaner and safer for New Jerseyans to breathe by getting more automobiles off the roads. And it leads to more physical activity too — public transit users, on average, walk more than drivers. And the connections between bicycle infrastructure and transit infrastructure show tremendous promise, helping to extend the reach of public transit and get more riders on buses and in trains, without further clogging local roads — and doing so in a way that is more affordable for less well-off residents.

But public transit’s social, economic and health benefits don’t exist if there are no riders, or not enough riders. And if the transit system is unaffordable, unreliable and unsafe due to years of disinvestment, the riders will — if they can — stay away.

New Jersey has shirked its responsibility to invest the dollars necessary to create a reliable, affordable, modern public transit system. In 2016, policymakers took a big step toward fixing this problem by raising fuel taxes to help pay for capital investments in transit modernization and for expansion across the state. That will help, but it will not fix New Jersey’s long-standing underfunding of NJ Transitoperatingcosts.

Lawmakers must find adequate, stable and dedicated funding for NJ Transit’s operations. From 2005 to 2017, the state slashed direct support of NJ Transit by 59 percent. This meant NJ Transit increasingly turned to riders to make up the difference. Major fare hikes raised rider contributions by 45 percent over the same time.[25]

Riders pick up far more of the tab for NJ Transit (52 percent) than they do for most peer transit agencies around the country. In Chicago, for example, riders pay for 38 percent of operations and in Los Angeles, just 22 percent. This is a direct result of how little of NJ Transit’s operating budget is covered by dedicated taxes — just 1.3 percent, compared to 51 percent in Chicago and 58 percent in Los Angeles.

Dedicated, stable annual revenues are necessary to support NJ Transit’s operating budget. Lawmakers should consider a variety of options, including congestion pricing, a surcharge on gas-guzzling automobile purchases and taxing businesses that disproportionately benefit from transit (as New York’s Metropolitan Transit Agency does). Ensuring stable and adequate support for operating expenses will prevent NJ Transit from imposing even more fare hikes or capital funding raids.

Reverse disinvestment in higher education

People who attend and graduate from college have a greater shot at economic success — and at living healthier lives. Now more than ever, Americans with less education are dying earlier than their peers; more likely to have major diseases, such as heart disease and diabetes; more likely to have risk factors that predict disease, such as smoking and obesity; and more likely to have diminished physical abilities for health reasons or to be disabled.[26]

New Jersey policymakers concerned with improving health outcomes for all residents shouldn’t overlook the role of affordable public higher education — and should work to reverse the recent trend of sustained disinvestment in New Jersey’s public colleges and universities.

At a time when more students than ever are seeking to secure their families’ future with a college education, New Jersey has slashed funding for its institutions of higher learning and shifted the cost burden onto the shoulders of striving students and their families. Between 2008 and 2018, New Jersey’s funding for public four-year colleges and universities dropped 24 percent, representing a $2,387 cut per-student. Over that same period, average tuition costs at public four-year colleges and universities increased 18 percent, or $2,075, from $11,973 in 2008 to $13,868 in 2018.

This results in an increasingly heavy burden for New Jersey families. In 2017, average tuition and fees at a public four-year institution accounted for 17 percent of a New Jersey family’s median income. For families of color — who often face additional barriers to employment and increased difficulty accessing jobs that pay better — the situation was far more severe, with those costs accounting for 27 percent of a Black New Jersey family’s median income and 25 percent of a Latinx family’s median income.[27]

To slow the increase in unaffordable college prices and rising student debt, New Jersey should at the very least return to pre-recession levels of funding for higher education.

Raise adequate revenues in an equitable way

Creating opportunities for all New Jerseyans to lead healthier lives requires investments beyond traditional health care spending. It is essential to apply a health lens to the way the state raises and spends money, because health starts with where we live, learn, work, and play. Great schools, safe and vibrant communities, quality jobs, and programs that lift and keep people out of poverty strengthen our economy while creating opportunities for healthier New Jerseyans in every corner of the state. To support these foundations of thriving communities, our state needs dependable revenues that are equitable, sustainable, and adequate.

The good news is that New Jersey’s fiscal year 2019 budget, the first of Governor Murphy’s administration, signaled a much-needed reversal after nearly a decade of austere fiscal policy.[28]After years of neglect, assets critical to New Jersey’s economic success, like K-12 schools, public transit, and county colleges all received modest increases in state funding. However, the most recent budget falls short in one key area that has plagued the state and its finances for three decades: there are simply not enough stable, long-term sources of new revenue to sustain these increased investments.

Policymakers should build on the steps taken in the FY 2019 budget by implementing adequate revenue streams. Doing so will help unleash important public investments that can boost opportunity and the long-term health of New Jersey’s current and future generations.

Policymakers should:

  • Continue to make the state income tax more based on the ability to pay, by levying higher marginal rates on income over $1 million
  • Restore adequate taxation of inherited wealth
  • Reform and minimize corporate tax breaks for economic development
  • Modernize the sales tax and return the base rate to 7 percent
  • Strengthen the state’s newly implemented combined reporting law
  • Make the corporate tax surcharge permanent

Author’s Note: Support for this report was provided by the Robert Wood Johnson Foundation. The views expressed here do not necessarily reflect the views of the Foundation.

 


Endnotes

[1]Patrick L Remington, Bridget B Catlin and Keith P Gennuso, “The County Health Rankings: rationale and methods,” Population Health Metrics, April 17, 2015, https://pophealthmetrics.biomedcentral.com/articles/10.1186/s12963-015-0044-2. Note that the County Health Rankings model does not account for genetics and biology, which are not measurable or modifiable.

[2]https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2837459/

[3]Ibid.

[4]http://www.countyhealthrankings.org/app/new-jersey/2018/overview

[5]https://societyhealth.vcu.edu/work/the-projects/mapstrenton.html

[6]http://www.nationalcollaborative.org/wp-content/uploads/2018/07/hope_chartbook_final-1.pdf

[7]Although life expectancy for Latinx people is higher than for whites and higher than the U.S. average, the data include individuals born in the United States as well as individuals born outside the United States. Individuals born in the United States tend to have lower life expectancy than those born outside the United States. A growing body of research explores other potential reasons for longer life expectancy among Latinx populations relative to what would be expected based on their income and education levels. See: Neil K. Mehta et al., “Life Expectancy Among U.S.-born and Foreign-born Older Adults in the United States: Estimates From Linked Social Security and Medicare Data,” Demography: August 2016, 53(4): 1109-1134, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5026916/; Paola Scommenga, “Exploring the Paradox of U.S. Hispanics’ Longer Life Expectancy,” Population Reference Bureau, July 12, 2013, https://www.prb.org/us-hispanics-life-expectancy/

[8]https://www.njpp.org/healthcare/new-jerseys-individual-market-premiums-to-be-among-the-lowest-in-the-nation

[9]https://www.njpp.org/reports/increasing-the-minimum-wage-to-15-would-boost-the-economy-and-help-over-1-million-workers-but-not-if-the-legislature-stalls

[10]United Way of Northern New Jersey, ALICE Report 2019: https://www.dropbox.com/s/h3huycfbak512t2/18_UW_ALICE_Report_NJ_Update_10.19.18_Lowres.pdf?dl=0

[11]http://rocunited.org/wp-content/uploads/2018/02/OneFairWage_W.pdf

[12]https://www.cbpp.org/research/federal-tax/policy-basics-the-earned-income-tax-credit

[13]https://www.cbpp.org/research/state-budget-and-tax/policy-basics-state-earned-income-tax-credits

[14]https://www.cbpp.org/blog/state-eitc-expansions-will-help-millions-of-workers-and-their-families

[15]https://www.njpp.org/budget/eitc-expansion-would-provide-a-crucial-boost-to-hundreds-of-thousands-of-new-jerseyans

[16]http://www.nationalpartnership.org/our-work/resources/workplace/paid-leave/the-child-development-case-for-a-national-paid-family-and-medical-leave-insurance-program.pdf

[17]https://smlr.rutgers.edu/sites/default/files/images/NJ_HIA_-_Full_ReportApril2011_0.pdf

[18]http://www.nationalpartnership.org/our-work/resources/workplace/paid-sick-days/paid-sick-days-lead-to-cost-savings-savings-for-all.pdf

[19]https://blogs.cdc.gov/niosh-science-blog/2012/07/30/sick-leave/

[20]https://smlr.rutgers.edu/sites/default/files/documents/Jersey_City_ESD_Issue_Brief.pdf

[21]https://developingchild.harvard.edu/resources/the-foundations-of-lifelong-health-are-built-in-early-childhood/

[22]https://www.rwjf.org/content/dam/farm/reports/issue_briefs/2014/rwjf414926

[23]https://prekourway.org/assets/Pre-K-Our-Way_ExpandNJsPreK_OCTOBER_2018.pdf

[24]https://prekourway.org/assets/Pre-K-Our-Way_WINTER-2018_Newsletter.pdf

[25]http://blog.tstc.org/2016/12/13/nj-transit-lacks-dedicated-funding-thats-not-normal/

[26]https://www.rwjf.org/en/library/research/2014/01/education–it-matters-more-to-health-than-ever-before.html

[27]https://www.cbpp.org/research/state-budget-and-tax/unkept-promises-state-cuts-to-higher-education-threaten-access-and

[28]https://www.njpp.org/budget/opportunity-lost-consequences-and-shortcomings-of-the-fiscal-year-2019-budget

Defending Reproductive Rights in New Jersey by Improving Access to Health Care for All

To read a PDF version of this report, click here.


Access to safe, accessible, and medically competent reproductive health care in the United States is under concentrated and powerful attack. A more radical Supreme Court now puts in jeopardy key reproductive health services like Title X federal funding for family planning and the constitutional right to abortion. The current political climate provides progressive-leaning states like New Jersey an urgently important opportunity to develop and enact forward-thinking reproductive health care policy.

This report highlights some of those opportunities by examining a wide cross section of gaps and disparities in New Jersey’s reproductive health care landscape. The selected issues include:

  • Expanding access to contraception and abortion
  • Addressing maternal and infant mortality disparities
  • Providing dignity for people who are incarcerated
  • Expanding health care for undocumented immigrants

This sampling was chosen due to its urgency, invisibility, and vulnerability to political attacks. By highlighting a cross-section of issues, the report aims to foster renewed interest among policymakers and advocacy organizations in pursuing state-level policy that guarantees every individual—regardless of circumstances or identity—equal access to reproductive health care services.

The reproductive health care gaps identified in this report are based on a series of one-on-one interviews conducted with community leaders and advocates from several organizations representing communities that chronically face barriers to reproductive health care (see the list at end of the report). Those facing these challenges due to their circumstance, income, or identity include, but are not limited to, women of color, people who are undocumented, LGBTQI communities, incarcerated people, people with disabilities, indigenous high-poverty communities, young people, and residents of rural areas. As experts of their own lives, community members and leaders from these groups are best equipped to inform policy changes that can improve those lives.

By focusing on those who have been historically underserved, this report follows the example of the groundbreaking work of Reproductive Justice, the movement created by women of color as an alternative to the mainstream reproductive rights framework. To be clear, this report was developed by individuals who are not associated with Reproductive Justice organizations. Rather, the intention is to inspire New Jersey stakeholders to invest in the principles developed by leaders of the Reproductive Justice movement and champion legislation that embodies the Reproductive Justice framework. For more information about the history of the Reproductive Justice movement and framework, see Appendix I.

Reproductive Health Care Policy in the Garden State

New Jersey has a strong record for advancing reproductive health care policy, but programs that serve low-income people, especially women of color, have chronically been vulnerable to funding cuts.[1] For example, $7.5 million in annual state grants for family planning services, prevention and treatment of sexually transmitted infections, and cancer screenings for low-income residents were cut from the state budget for eight consecutive years.[2] Those cuts forced six of the 58 family planning clinics in the Garden State to close. Of the 136,000 mostly low-income patients served by New Jersey’s family planning clinics each year, many were left to find care elsewhere or skip care altogether.[3]

With a new governor in office, New Jersey has taken steps to correct course. Through advocacy efforts led by Planned Parenthood Action Fund of New Jersey, that funding has finally been restored. In addition, more people now have access to reproductive health services through the state’s Medicaid program which covers comprehensive contraceptives, abortion care, and prenatal care. More recently a pilot home visitation program providing parenting support to at-risk families has been established and $4.3 million in grants has been committed to address New Jersey’s dismal black infant mortality and maternal health rates.[4][5]

Still, there are many outstanding issues that demand policymakers’ attention. These issues persist because the advancement of reproductive health policy in the Garden State has failed to actively dismantle the ongoing, systemic oppression of women of color and other historically marginalized groups. When marginalized communities are absent at the forefront of a movement, chronic health care gaps and disparities can persist and worsen, harming the very communities most vulnerable to institutional injustice. Though presumably unintentional, the effect is ubiquitous. To improve reproductive health care access for everyone in New Jersey, policymakers must work to eliminate unnecessary barriers and focus resources on communities that historically have been the most disadvantaged. See Appendix II for examples of recent and pending legislation that represent the kind of forward-thinking policy agenda being advocated for in this report.

Improving Access to Contraception and Abortion

 The scope of reproductive health care is not limited to contraception and abortion care, but these specific services have long been targeted for political reasons. Given the intensified political climate on the national level around reproductive health care access, it is vital that New Jersey defend these services from ideological attacks by expanding access through multiple avenues. In the following discussion of contraception and abortion, when we refer to people who can become pregnant, we emphasize the inclusion of women, transgender men, and gender non-conforming people.

Contraception

 A person’s ability to plan, prevent, and space pregnancy is directly linked to their ability to access contraception. New Jersey has a responsibility to ensure that all people who can become pregnant, regardless of their circumstance, have control over their reproductive health decisions—and by extension their economic status—by removing unnecessary or outdated barriers to contraceptive services. New Jersey could begin by removing payment and logistical barriers that most impact communities vulnerable to patterns of institutional bias and discrimination.[6] Improving the lives and well-being of all families through better access to family planning services helps New Jersey conserve health care resources by reducing the number of unintended pregnancies, which cost the state over $185 million in 2010 alone.[7]

One immediate opportunity to remove harmful barriers is to require health insurance companies to provide a 12-month supply of birth control instead of 6 months—a measure that has been shown to cut down on both costly doctors’ visits and unintended pregnancies. According to a University of California, San Francisco study, dispensing a one-year supply of birth control at a time is associated with a 30 percent reduction in the likelihood of unplanned pregnancy.[8] Twelve states have mandated that health insurers cover an “extended supply” of birth control; several other states have pending legislation.[9]

 Should federal efforts to defund Title X be successful, New Jersey must step in and ensure that low-income communities continue to receive family planning care in a seamless manner. The state Medicaid program should also address several lingering logistical barriers. For example, offering long-acting reversible contraceptives, like IUDs, to patients immediately after giving birth, would dramatically expand contraceptive options for low-income parents. But billing logistics have stymied widespread implementation. Just before the release of this report, a first step toward improving this important access gap has been addressed. Another technical fix to make the process seamless for both the health care provider and the patient is under review.[10] New Jersey should also allow Medicaid recipients access to emergency contraception (EC) without the unnecessary extra step of having to obtain a prescription first—a logistical barrier left over from the George W. Bush era.[11] Requiring all retail pharmacies in the state to stock and dispense EC would greatly improve people’s ability to obtain this time-sensitive medication as well as improve another avenue toward reducing the rate of unintended pregnancy.

Abortion Care 

New Jersey has upheld the right to abortion care since the procedure was legalized under Roe v. Wade. Just as importantly, the state has largely remained outside the national trend of state-level abortion restrictions like waiting periods and gestational limits. Across the country, over 1,000 anti-abortion laws have been enacted with a notable increase in the last several years.[12] In fact, the state Constitution has been interpreted to provide more expansive protections for the right to privacy and the right to end a pregnancy than the federal Constitution does, even with the protections of Roe v. Wade.[13] Yet, barriers to abortion care remain in the Garden State, primarily due to inadequate insurance coverage and efforts by anti-abortion organizations to diminish access through harassment, intimidation, and deception. For uninsured or under-insured individuals who wish to end a pregnancy, the cost of care can be out of reach. According to a 2014 Guttmacher Institute national survey, 75 percent of abortion patients are low income and a majority paid for their abortion care out of pocket, even though most had health insurance coverage. Due to the large number of patients paying out of pocket for services, abortion providers have strived to maintain affordable cash fees. Still, the financial expense of accessing abortion care extends beyond the medical cost with a substantial number of patients reporting additional expenses such as transportation, childcare, and lost wages.[14] When faced with these unexpected expenses, some patients may be forced to delay paying bills, borrow money, or seek assistance from a privately-run abortion fund like the New Jersey Abortion Access Fund—options that can create unnecessary delays.

Before Roe v. Wadelegalized abortion nationwide, the class divide in access to the procedure was clear cut. Those in need of abortion care but without financial resources had no access to safe medical services. Those with means travelled to states like New York where the procedure was legalized in 1970. In the first two years, 60 percent of abortion patients were from outside the state.[15] AfterRoe, the Hyde Amendment was swiftly enacted, blocking all federal funds from paying for abortion information, referrals, or care. Recognizing this clear violation of state control over reproduction and decision-making, New Jersey opted in to use state funds to support Medicaid access to abortion services thereby mitigating the impact of the Hyde Amendment. New Jersey remains one of only twelve states to do so.

Despite this decades-long commitment, many abortion providers in New Jersey struggle to cover costs due to low reimbursement rates from both Medicaid and the private insurance sector. Even when private insurers have appropriately negotiated reimbursement rates, many people are still unable to utilize their policies to access abortion care. For example, some private policies do not cover abortion services for policy holders or dependents, or policies may have increasingly high deductibles, which forces many patients to pay for services out-of-pocket.[16] The overall effect of underfunding leaves health centers trying to provide high-quality care to everyone regardless of ability to pay while keeping the doors open in a safe environment for patients and staff. Independent abortion providers, committed to maintaining meaningful access to abortion care throughout pregnancy while enduring the bulk of harassment by anti-abortion extremists, feel this financial strain most acutely. As reproductive rights continue to erode across the county, now is the time for New Jersey to invest in expanding and preserving abortion access.

 Increasing Medicaid Reimbursement Rates for Abortion Providers: A Case Study

 Cherry Hill Women’s Center (CHWC), a premier independent abortion provider in Camden County, New Jersey, is a prime example of this struggle. CHWC specializes in providing first and second trimester abortion care and other reproductive health services, inspired by their belief in the autonomy of the individual and their commitment to strengthening communities. Yet, because abortion care is a highly politicized and stigmatized health service, it carries its own set of unique challenges and obstacles that increase operating costs.

For decades, abortion providers have faced the risk of violence at the hands of anti-choice extremists, creating unusual security needs that other health care facilities do not have. This includes security guards, secure entry, 24-hour closed-circuit video cameras, bullet-proof glass, high-level security trainings, and coordination of clinic volunteers to escort patients through protestors. Screening of patients, staff, and vendors is needed to eliminate the opportunity for anti-abortion extremists to breach security, violate privacy, and/or commit violence. All these safety measures require resources that may need to be diverted from health care services and clinic sustainability. Given the alarming increase of anti-abortion rhetoric at the federal level, there has been a notable increase in violence meant to disrupt care and intimidate patients and staff members.[17]

The threat of violence also has a ripple effect on other aspects of operating an independent abortion clinic like CHWC. It makes it more difficult to contract necessary services, such as facility maintenance, medical waste disposal, and the purchasing of medical supplies. Targeting by anti-abortion extremists also makes it difficult to recruit and retain medical professionals to perform abortion procedures due to their own safety and privacy concerns. Abortion providers are already hard to recruit due to limited access to training, low-reimbursements, and increasingly high insurance costs.

Medicaid reimbursement rates fail to consider not only the true cost of health care, but the unique costs associated with providing abortion care in a safe and secure setting. Simply put, Medicaid reimbursement rates for abortion care have not kept pace with medical care costs and certainly do not account for the complex challenges faced by abortion providers.[18]

Taken as a whole, abortion providers remain at an economic disadvantage due to the burden of these unavoidable extra costs. As it stands, the United States has a limited number of facilities qualified to provide abortion throughout all stages of pregnancy, particularly the third trimester. Policymakers looking to improve and expand abortion access in New Jersey can start by increasing Medicaid reimbursement rates for a medical service that has been politicized and stigmatized for far too long.

Fake Women’s Health Centers

 Everyone deserves unbiased, evidence-based health information, regardless of their zip code or financial situation. In New Jersey, this value is exemplified by mandated comprehensive sex education curriculum. Thorough and accurate sexual health education provides young people with the tools they need to make decisions about their health and well-being. Unfortunately, there are organizations operating in New Jersey with the sole intention of derailing access to legitimate reproductive health care services.

Fake women’s health centers, or crisis pregnancy centers, have become a well-established tactic used by anti-abortion extremist organizations with the intention of misleading women seeking pregnancy options, counseling, or abortion care.[19] They use false and deceptive advertising to lure unsuspecting pregnant women to a facility staged to look like a legitimate health care clinic, where staff attempt to coerce them to continue their pregnancies using false medical information, shame, and religious rhetoric.[20] Some of these unlicensed, unregulated “clinics” even provide cursory health services like ultrasound imaging to manipulate women.[21]

Fake women’s health centers have also infiltrated the public school system, offering supplemental abstinence-only sex education based in misinformation and stigma.[22] This puts students at a dangerous disadvantage, making them vulnerable to deception when accessing reproductive health care in the future. This kind of lapse speaks to the need for a comprehensive inventory of New Jersey’s existing sex education curriculum and funding sources, which includes federal “abstinence-only” dollars.[23] Fortunately, a review of New Jersey’s existing sex education curriculum for grades one through 12 is scheduled for 2019. Plans to re-evaluate federal contracts, update the standards, develop sample lesson plans, provide more sex education training for teachers, and incorporate an evaluation tool to ensure accountability are important steps toward getting New Jersey back on track as a strong supporter for comprehensive sex education.

But more commonly, fake women’s health centers target vulnerable women by burgeoning in underserved communities and offering their services free of charge, potentially increasing systemic inequalities.[24][25] Similar to the sex education example above, the proliferation of these health centers in New Jersey is an indicator of ongoing gaps in health care access. Most New Jersey counties have only one family planning clinic, and nearly one in four women live in a county with no abortion provider at all.[26] These gaps put those with limited finances and access to transportation at risk of being duped by fake women’s health centers. Addressing these gaps by increasing the availability and access to qualified health care providers, as well as clearly indicating where people can access these services, will have the biggest impact on the lives of New Jersey women seeking legitimate reproductive health care.

Addressing Maternal and Infant Mortality Disparities

When maternal health care needs go unmet—whether incidentally or systematically—the health and well-being of parents and children are put at serious risk. For decades, New Jersey’s Black families have been at a greater risk than anyone else.

While the overall maternal death rate in New Jersey has improved over time and is below the national rate, enormous racial disparities have persisted. Black women in New Jersey are more than four times more likely to die from pregnancy-related complications as white women.[27] Similarly, the likelihood of a New Jersey infant dying before their first birthday has recently dropped and is slightly lower than the national rate. Yet, the disparity between white and Black infant mortality in New Jersey is the worst in the country. A Black infant born in the Garden State is three times more likely to die than a white infant, regardless of their mothers’ income level or educational attainment.[28]

Research suggests that Black women are susceptible to dangerous pregnancies and birth outcomes due to “weathering,” the cumulative effects of racism on one’s health and well-being.[29] The chronic stress of discrimination in all aspects of society—from housing to employment to picking up groceries—may negatively affect the body causing it to age prematurely. These effects may “weather” African American women more acutely than other women resulting in high-risk reproductive health issues.[30]

New Jersey’s dismal Black maternal mortality rate is not breaking news to the state’s Health Department. Since 1931, it has reviewed maternal health outcomes with detailed research about the root causes of its high maternal mortality rate and possible causes of the stark racial and ethnic disparities. But, like other states, New Jersey has failed to find long-lasting solutions to close the racial gap in maternal health. With a new governor in office, interest in the issue has been renewed. Another maternal mortality review commission has been established, a proposed infant mortality review board is moving through the legislature and grants have been awarded to community-based organizations in high-risk areas to help coordinate maternal care including doula pilot programs in Newark and Trenton.

These targeted efforts are based on similar work taking place North Carolina, one of the few states that have successfully closed the racial gap in maternal health.[31] Doctors there are incentivized through Medicaid reimbursements to screen pregnant women for issues that may trigger a high-risk pregnancy. Patients that have either physical or psychological risks are connected to a “pregnancy care manager” who helps expectant mothers follow their care plan by addressing a wide range of barriers. The North Carolina Pregnancy Medical Home program provides support for everything from access to insulin to housing issues to helping offset both the physical stress of pregnancy and the physical stress in one’s life that has real consequences on one’s health.

In addition to the state-supported medical home model, over 60 North Carolina birthing hospitals have conducted several statewide quality improvement efforts including cutting down on inducing birth before a baby’s due date and improving rapid response treatment of mothers with gestational hypertension and preeclampsia—two of the most severe and dangerous health issues among African American mothers.

Studies also show that in countries with a generous parental leave policy there are tremendous effects on morbidity and mortality rates of infants and young children.[32] New Jersey is one of only four states that have implemented a paid leave policy providing workers and their families the opportunity to take time off work to bond with a new baby or adopted child or care for an elderly or very sick family member. However, very few New Jersey workers utilize the program because they are either not aware of it, or they fear negative repercussions at work, including job loss. In addition, workers struggling to balance work and family caregiving simply can’t afford the low wage replacement rate that is offered by the program.

Meanwhile, there are stark disparities among New Jersey mothers who take paid leave. Between 2012 and 2015, white women in New Jersey were 3 times more likely to take leave than Black women.[33] National research has shown that workers of color are more likely to work for firms that don’t offer family leave insurance.[34] New Jersey is poised to make major improvements to its existing Family Leave Insurance program including promotional efforts so that more workers take advantage of the program. However, the current bill may leave 750,000 workers without job protection putting their household economic security at risk.

The next step for New Jersey is to strengthen its Family Leave law and move beyond demonstration projects and pilot programs. One key component to addressing racial disparities in maternal health care is found in making the leap toward sustainable funding for medical home models in at-risk communities, higher Medicaid reimbursement rates for obstetric services in the hospital setting, and Medicaid coverage for related services including doula care and home visitation.

In fact, state legislators have recently introduced a bill to provide state Medicaid coverage for doula services. Doula care, non-clinical emotional, physical, and informational support before, during and after birth, is associated with lower caesarian section rates, fewer obstetric interventions, fewer complications, shorter labor hours, and healthier newborns. These improvements are critical for Black mothers who are disproportionately at risk for pregnancy-related complications and are routinely subjected to the inherent biases of medical staff that can have life or death consequences.[35] Doula care has been proven to reduce health disparities, improve health outcomes, and improve quality of care, especially in low-income communities.[36] Studies have shown potential cost savings, even if doula care services are partially covered.[37]

Dignity for Those Incarcerated

 Regardless of circumstance, everyone deserves to be treated with dignity. In the prison setting that includes having the right to serve a sentence free of abuse, to access appropriate health care, and to maintain parenting obligations. Key criminal justice policy reform like the expansion of drug courts and the overhaul of the bail system has helped New Jersey reduce its prison population by almost a third (28 percent) since 2000.[38] That trend has fared better for New Jersey women as the men’s prison population has declined by a smaller proportion.

Still, stark disparities persist. According to a 2016 report, New Jersey has the nation’s highest rate of Black/white disparity with African Americans being incarcerated in state prisons 12 times the rate of imprisonment of whites.[39] As a comparison, the national disparity rate is five to one.

To the state’s credit, a newly mandated racial and ethnic impact statement provides an overdue opportunity for lawmakers to address this glaring disparity by reviewing a statistical analysis of the impact of proposed criminal justice policy changes. It is a vital first step toward making informed decisions about improving public safety without exasperating existing racial disparities. Now it is time for policymakers to do the same for gender disparities in the criminal justice system.

Multiple studies show that there is a direct link between women with a history of trauma, substance use disorders, poverty, and mental health problems and their eventual contact with the criminal justice system, where these problems are often exacerbated. New Jersey’s only women’s prison serves as a sobering example.

The Edna Mahan Correctional Facility for Women, which houses about 650 inmates, is currently the subject of at least 11 lawsuits related to sex abuse allegations including a class-action suit that details a history of abuse at the prison since the early 1990s.[40] An independent review has been commissioned by the State Attorney General’s Office and a federal civil rights investigation is underway. Four staff members have been convicted, and three other correctional officers face trial.

Despite laws and procedures in place to ensure the safety of inmates, the Department of Corrections has systematically failed to protect these women. Policymakers’ response to this horrific pattern of abuse and inaction has been to propose ways of improving existing procedures. This is a missed opportunity to look beyond the deficiencies of the correctional system and instead shine a spotlight on the unmet needs of Edna Mahan’s prison population.

According to the Vera Institute for Justice, many jailed women experience mental illness and extremely high rates of victimization—including childhood sexual abuse, sexual assault, and intimate partner violence.[41] New Jersey’s correctional system has not only failed to properly treat women inmates, it has re-traumatized women through unchecked abuse of power. Even standard practices such as strip searches have the potential to retraumatize victims of sexual assault. A former inmate involved with the class action lawsuit said she came forward to help women like herself who “had to live with monsters just to come to a different place and have to live with a new set of monsters.”[42]

To improve conditions at Edna Mahan, state legislators have introduced bills that are primarily focused on codifying existing policy, including the prohibition of shackling pregnant women, limitations on the use of strip searches, and the expansion of the correctional ombudsman’s role to include sexual assault.[43] While these responses are notable, more must be done.

New Jersey’s criminal justice system is one that is primarily designed for the incarceration of men. To improve conditions in a meaningful way, reform must begin with identifying the unique needs of a prison population comprised entirely of women. An inclusive overview of Edna Mahan’s population would provide an opportunity to improve and expand access to health care that meets the needs of its inmates, including reproductive health care for individuals across the gender spectrum. This path toward meaningful reform should begin with policymakers sitting down with formerly incarcerated women and advocates who represent the interests of incarcerated women.

Expanding Health Care for Undocumented Immigrants

 Health care access is a fundamental right for everyone regardless of where they come from or how they arrived in the country. Yet, this right is routinely denied to undocumented families living in New Jersey due to financial and travel barriers to health care services.

Federal restrictions to programs that provide health care coverage, job-training, nutrition, and cash assistance vary depending on the immigration status of noncitizens. The Personal Responsibility and Work Opportunity Act/Illegal Immigration Reform and Immigrant Responsibility Act of 1996 created two categories of immigrant community members: “qualified” or “not qualified.”[44] In addition, the federal law banned legal immigrants who are permanent residents or green card holders from accessing a variety of welfare services or health care programs for a period of 5 years beginning on the date of entry into the United States.[45]

However, states do have the power to implement their own health care policies. For example, state health plans in six states and Washington D.C. cover all children, regardless of immigration status and health plans in 17 states cover all pregnant women, regardless of immigration status. New Jersey is not among these states, but there is movement to change that.[46][47]

While the Garden State has made great strides in reducing the overall uninsurance rate for children to 3.5 percent, there are still 70,000 kids who remain uninsured. Half of these children are undocumented immigrants not eligible for coverage through NJ FamilyCare, the state Medicaid program. Making the well-being of all children a priority would provide long-range health and social savings to the state. Children who are covered by Medicaid are more likely to do better in school, finish high school, attend college and graduate from college, have fewer emergency-room visits and hospitalizations, and earn more as adults.[48]

New Jersey would also benefit in the long run if undocumented immigrant adults also became eligible for health care coverage, starting with those who can become pregnant. Currently, undocumented women—including DACA recipients and women who have held lawful permanent resident status for less than five years—have no access to health care coverage including coverage for preventative reproductive health services. New Jersey should extend health coverage for all undocumented women by offering a full range of reproductive health services. Modeled after Oregon’s Reproductive Health Equity Act, this comprehensive measure would provide undocumented individuals with health care coverage for contraceptives and related services including counseling, voluntary sterilization, screenings for pregnancy, pregnancy care, birth services, sexually-transmitted infections and cancers, and abortion care.[49]

In addition to expanding Medicaid coverage, policymakers should address additional barriers to health care that undocumented families face every day. For example, immigrant rights advocates are pushing to join the 12 states and DC that already allow all residents to obtain a driver’s license, regardless of immigration status.[50] Though seemingly unrelated, expanding eligibility to a driver’s license to all qualified individuals in the state would profoundly improve the ability to access to health care. Transportation barriers created by the inability to access a driver’s license and fear of being detained at a routine traffic stop equate to real obstacles for undocumented people, missed doctor’s appointments and delays in picking up prescriptions. The outcomes have negative health implication and are especially detrimental for time-sensitive, pregnancy related care.[51] Transportation barriers are particularly harmful for those with lower incomes or those who are underinsured or uninsured.

 Special Thanks To:

 Cherry Hill Women’s Center

Planned Parenthood Action Fund of New Jersey

New Jersey Institute for Social Justice

National Immigration Law Center

Garden State Equality

Rutgers Criminal and Youth Justice Clinic

Women Who Never Give Up

National Council of Jewish Women – Essex County

American Friends Service Committee Prison Watch

New Jersey Family Planning League

Family Planning Association of New Jersey

American Civil Liberties Union of New Jersey

New Jersey Abortion Access Fund

Unitarian Universalist Faith Action New Jersey

National Institute for Reproductive Health

State Innovation Exchange


Appendix I: Reproductive Justice Definition and Resources

Reproductive Justice is both a theoretical framework and a social movement created by women of color in the Southern United States as an alternative to the mainstream reproductive rights movement. Sister Song describes Reproductive Justice as the complete physical, mental, spiritual, political, social, and economic well-being of individuals, based on the full achievement and protection of human rights.[52] The issues central to Reproductive Justice impact one’s right “to not have children using safe birth control, abortion, or abstinence; the right to have children under the conditions we choose; and the right to parent the children we have in safe and healthy environments.”[53] By centering the unique, interconnected identities that shape the lives of women within the movement, organizations using the Reproductive Justice framework present a holistic vision with which to challenge policy decisions entrenched in reproductive oppression.

By placing bodily autonomy and the right to access abortion care within the larger human rights framework, Reproductive Justice illuminates the intersections of seemingly unrelated issues like police violence, inhumane immigration policies and environmental racism.

The concept, in part, grew out of the acknowledgment that communities of color and other marginalized groups were often left out of reproductive rights advocacy work, which traditionally centers on abortion rights. This limited scope fails to account for the historical reproductive oppression of people of color engrained in the United States, including forced sterilization, medical experimentation, and family separation. By framing reproductive rights around the issues of “choice” and “privacy,” the mainstream movement for reproductive freedoms have effectively silenced the voices, experiences, and circumstances of women who historically have had to contend with racial and economic injustice. For example, shortly after Roe v. Wadewas decided in 1973, Congress quickly passed the Hyde Amendment, banning federal dollars from being used to provide abortion care. The failure of reproductive rights advocates to immediately mobilize against this policy has had a devastating and long-lasting effect on access to abortion care for poor women. Despite a 1993 modification that extended coverage in cases of rape, incest, or danger to the mother’s life, the Hyde Amendment remains a major barrier to abortion care, especially for women of color and immigrants.

For more information, we encourage you to look to the Reproductive Justice organizations led by people of color advancing policy campaigns that reflect the unique needs of their communities and the historical work of Reproductive Justice leaders.

Appendix II: Recent and Pending Legislation in New Jersey That Reflect a Reproductive Justice Framework


Endnotes

[1] In this report, low-income generally refers to those with incomes at 200 percent or less of the federal poverty guidelines which in 2018 is just over $50,000 per year for a family of four.

[2] NJ.com, Eliminated by Christie 8 Years Ago, $7.5M for Women’s Clinics is Making a Comeback, January 2017. http://www.nj.com/politics/index.ssf/2018/01/eliminated_by_christie_8_years_ago_75m_for_womens.html

[3] Last year 94 percent of those seeking care at family planning clinics had incomes at 200% or less of the federal poverty guidelines (Interview with New Jersey Family Planning League).

[4] P.L.2017, Chapter 50, An Act Establishing a Home Visitation Pilot Program in Medicaid, Approved May 1, 2017. https://www.njleg.state.nj.us/2016/Bills/AL17/50_.PDF

[5] New Jersey Department of Health, DOH Announces $4.3 million to Reduce Disparities in Birth Outcomes and Black Infant Mortality, April 2018. https://nj.gov/governor/news/news/562018/approved/20180430a_birthoutcomes.shtml

[6] AMA Journal of Ethics, “Vulnerable” Populations: Medicine, Race, and Presumptions of Identity, July 2011. https://journalofethics.ama-assn.org/article/vulnerable-populations-medicine-race-and-presumptions-identity/2011-07

[7] Guttmacher Institute, State Facts About Unintended Pregnancy: New Jersey, August 2017. https://www.guttmacher.org/fact-sheet/state-facts-about-unintended-pregnancy-new-jersey

[8] Obstetrics & Gynecology, Number of Oral Contraceptive Pill Packages Dispensed and Subsequent Unintended Pregnancies, March 2011. https://journals.lww.com/greenjournal/Fulltext/2011/03000/Number_of_Oral_Contraceptive_Pill_Packages.8.aspx

[9] California, Hawaii, Illinois, Maryland, Massachusetts, Nevada, New York, and Vermont. Colorado, Maine, Oregon and Washington State laws go into effect January 2019. Guttmacher Institute, Insurance Coverage of Contraceptives, August 2018. https://www.guttmacher.org/state-policy/explore/insurance-coverage-contraceptives

[10] New Jersey Department of Human Services, Division of Medical Assistance & Health Services, NJ FamilyCare Coverage of Long-Acting Reversible Contraceptive Devices, Newsletter Volume 28 No. 18, October 2018. https://www.njmmis.com/documentDownload.aspx?fileType=RecentNewsLetters

[11] Emergency contraception is not a medical abortion. Emergency contraception works primarily by delaying or inhibiting ovulation. Emergency contraception will not work if a woman is already pregnant. For more information about the difference between these two medications, see this fact sheet from the American Society for Emergency Contraception http://www.cecinfo.org/custom-content/uploads/2013/03/MedAbort_FactSheet_2013_ASEC.pdf

[12] Guttmacher Institute, Last Five Years Account for More Than One-quarter of All Abortion Restrictions Enacted Since Roe, January 2016. https://www.guttmacher.org/article/2016/01/last-five-years-account-more-one-quarter-all-abortion-restrictions-enacted-roe

[13] See Planned Parenthood of Cent. New Jersey v. Farmer, 165 N.J. 609, 629, 762 A.2d 620, 631 (2000) (“The language of that paragraph is ‘more expansive … than that of the United States Constitution….,’ it incorporates within its terms the right of privacy and its concomitant rights, including a woman’s right to make certain fundamental choices. Thus, in New Jersey, we have a long-standing history that begins even prior to Roe v. Wade, demonstrating a commitment to the protection of individual rights under the State Constitution.”) (citations omitted); id. at 632-33 (“Our inquiry begins with an examination of the nature of the affected right. We have earlier discussed the importance of a woman’s right to control her body and her future, a right we as a society consider fundamental to individual liberty. Although we will not repeat that discussion here, we are keenly aware of the principle of individual autonomy that lies at the heart of a woman’s right to make reproductive decisions and of the strength of that principle as embodied in our own Constitution. We have not hesitated, in an appropriate case, to read the broad language of Article I, paragraph 1, to provide greater rights than its federal counterpart. Our precedents make clear that the classification created by the statute is deserving of the most exacting scrutiny.”) (citations omitted).

[14] Women’s Health Issues, At What Cost? Payment for Abortion Care by U.S. Women, May-June 2013. https://www.whijournal.com/article/S1049-3867(13)00022-4/fulltext

[15] New York Times, ’70 Abortion Law: New York Said Yes, Stunning the Nation,April 2000. https://www.nytimes.com/2000/04/09/nyregion/70-abortion-law-new-york-said-yes-stunning-the-nation.html

[16] Guttmacher Institute, Characteristics of U.S. Abortion Patients in 2014 and Changes Since 2008, 2016. https://www.guttmacher.org/report/characteristics-us-abortion-patients-2014

[17] National Abortion Federation, 2017 Violence and Disruption Statistics, 2017. https://5aa1b2xfmfh2e2mk03kk8rsx-wpengine.netdna-ssl.com/wp-content/uploads/2017-NAF-Violence-and-Disruption-Statistics.pdf

[18] Guttmacher Institute, Assessing the Gap Between the Cost of Care for Title X Family Planning Providers and Reimbursement from Medicaid and Private Insurance, January 2016. https://www.guttmacher.org/sites/default/files/pubs/Title-X-reimbursement-gaps.pdf

[19] NARAL Pro-Choice America, The Truth about Crisis Pregnancy Centers, January 2017. https://www.prochoiceamerica.org/wp-content/uploads/2016/12/6.-The-Truth-About-Crisis-Pregnancy-Centers.pdf

[20] Ibid 19

[21] Ibid 19

[22] Blue Jersey, Crisis Pregnancy Centers Are in Our Schools, Teaching Our Children, April 2018. http://www.bluejersey.com/2018/04/crisis-pregnancy-centers-are-in-our-schools-teaching-our-children/

[23] Sexuality Information and Education Council of the United States, State Profiles Fiscal Year 2017: New Jersey, July 2018. https://siecus.org/wp-content/uploads/2018/07/NEW-JERSEY-FY17-FINAL-New.pdf

[24] Although this paper seeks to include all those who can become pregnant, including women, transgender men, and gender non-conforming people, fake women’s health centers only target those they perceive to experience pregnancy, namely cisgender women.

[25] AMA Journal of Ethics, Why Crisis Pregnancy Centers Are Legal but Unethical, March 2018. https://journalofethics.ama-assn.org/article/why-crisis-pregnancy-centers-are-legal-unethical/2018-03

[26] Guttmacher Institute, State Facts About Abortion: New Jersey, May 2018. https://www.guttmacher.org/fact-sheet/state-facts-about-abortion-new-jersey#7

[27] NJ Spotlight, Black Mamas Highlight Racial Maternal Health Disparities, April 2018. http://www.njspotlight.com/stories/18/04/24/black-mamas-highlight-racial-maternal-health-disparities/

[28] NJ Spotlight, Racial Disparity in Infant Mortality Remains Persistent Public Health Challenge, June 2017. http://www.njspotlight.com/stories/17/06/05/racial-disparity-in-infant-mortality-remains-persistent-public-health-challenge/

[29] Human Nature, Do US Black Women Experience Stress-Related Accelerated Biological Aging? A Novel Theory and First Population-Based Test of Black-White Differences in Telomere Length, March 2010. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2861506/

[30] Journal of Women’s Health, The Impact of Racism on the Sexual and Reproductive Health of African American Women, July 2016. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4939479/

[31] Vox.com, Black Moms Die in Childbirth 3 Times as Often as White Moms. Except in North Carolina, July 2017. https://www.vox.com/health-care/2017/7/3/15886892/black-white-moms-die-childbirth-north-carolina-less

[32] Texas A&M University, Why American Infant Mortality Rates are So High, October 2016. https://www.sciencedaily.com/releases/2016/10/161013103132.htm

[33] NJ Department of Health and The Center for Disease Control and Prevention, Pregnancy Risk Assessment Monitoring System (NJ PRAMS), Employment, Workplace Leave and Return to Work Among New Jersey Mothers, March 2018. https://www.nj.gov/health/fhs/maternalchild/documents/workforce_mar2018.pdf

[34] Ibid 33

[35] Choices in Childbirth, Overdue: Medicaid and Private Insurance Coverage of Doula Care to Strengthen Maternal and Infant Health, January 2016.https://choicesinchildbirth.org/wp-content/uploads/2015/12/DoulaBrief_FINAL_1.4.16.pdf

[36] Ibid 35

[37] Ibid 35

[38] Bureau of Justice Statistics, 2000, 2015 in The Sentencing Project, Color of Justice: Racial and Ethnic Disparity in State Prisons, 2016. http://www.sentencingproject.org/publications/color-of-justice-racial-and-ethnic-disparity-in-state-prisons/

[39] The Sentencing Project, Color of Justice: Racial and Ethnic Disparity in State Prisons, 2016. http://www.sentencingproject.org/publications/color-of-justice-racial-and-ethnic-disparity-in-state-prisons/

[40] NJ.com, Sex Abuse Scandal at N.J. Women’s Prison Keeps Getting Worse, July 2018. https://www.nj.com/politics/index.ssf/2018/07/sex_abuse_scandal_at_nj_womens_has_sparked_at_leas.html

[40] Vera Institute of Justice, Overlooked: Women and Jails in an Era of Reform, August 2016. https://www.vera.org/publications/overlooked-women-and-jails-report

[41] NJ.com, Locked Up, Fighting Back: More Than a Dozen Female Inmates Accused an Officer of Abuse, January 2017. https://www.nj.com/news/index.ssf/page/locked_up.html

[42] NJ.com, New Crackdown on N.J.’s Women’s Prison Pushed Amid Sex Abuse Claims, May 2018. https://www.nj.com/politics/index.ssf/2018/05/lawmakers_push_crackdown_on_nj_womens_prison_amid.html

[43] National Immigration Law Center, Overview of Immigrant Eligibility for Federal Programs,December 2015. https://www.nilc.org/issues/economic-support/overview-immeligfedprograms/

[44] U.S. Department of Health & Human Services, Office of the Assistant Secretary for Planning and Evaluation, Summary of Immigrant Eligibility Restrictions Under Current Law, February 2009. https://aspe.hhs.gov/basic-report/summary-immigrant-eligibility-restrictions-under-current-law#sec

[45] States with health plan that cover all children include Washington, Oregon, California, Illinois, New York and Massachusetts.

[46] National Immigration Law Center, Health Coverage Maps, January 2018. https://www.nilc.org/issues/health-care/healthcoveragemaps/

[47] The Center on Budget and Policy Priorities, Medicaid Helps Schools Help Children, April 2017. https://www.cbpp.org/research/health/medicaid-helps-schools-help-children

[48] Reproductive Health Equity Act (OR HB 3391), 2017. https://olis.leg.state.or.us/liz/2017R1/Downloads/MeasureDocument/HB3391

[49] New Jersey Policy Perspective, Let’s Drive New Jersey: Expanding Access to Driver’s Licenses is a Common-Sense Step in the Right Direction, January 2018. https://www.njpp.org/reports/lets-drive-new-jersey-expanding-access-to-drivers-licenses-is-a-common-sense-step-in-the-right-direction

[50] The Journal of Rural Health, Access to Transportation and Health Care Utilization in a Rural Region, Winter 2005. https://www.ncbi.nlm.nih.gov/pubmed/15667007

[51] SisterSong Women of Color Reproductive Justice Collective and the Pro-Choice Public Education Project, Reproductive Justice Briefing Book: A Primer on Reproductive Justice & Social Change, 2007. https://www.law.berkeley.edu/php-programs/courses/fileDL.php?fID=4051

[52] Ross, Roberts, Derkas, Peoples, Bridgewater Toure, Radical Reproductive Justice: Foundations, Theory, Practice, Critique, November 2017.

New Jersey’s Individual Market Premiums to be Among the Lowest in the Nation

To read a PDF version of this report, click here.


New Jersey’s ongoing efforts to protect the Affordable Care Act (ACA) are starting to pay off: all middle class New Jerseyans who purchase their insurance in the individual market will pay far less than they otherwise would have next year and for the foreseeable future. These major savings will be available to New Jerseyans who exceed the income cut-off for federal subsidies, which is $48,560 a year for an individual and $100,400 for a family of four. Time is of the essence as consumers can maximize saving by selecting a plan before the open enrollment period ends on December 15.

This relief could not occur at a better time since these same New Jerseyans were hit with a whopping 19 percent increase in their premiums this year as the Republican-led Congress and Trump administration worked tirelessly to undermine the individual market.[1] That made insurance unaffordable for many New Jerseyans and was one of the major reasons why the number of residents in the individual market decreased by about 40,000 in 2018.[2]

Thanks to the following actions taken by the state to reverse the federal ACA sabotage, consumers will be able to achieve major savings starting next year:

  • Establishing a reinsurance program that will reimburse insurers for individuals with unusually high medical costs, which will be mainly supported with federal funds.
  • Maintaining the federal individual mandate for New Jerseyans who can afford insurance.
  • Encouraging insurers to offer lower-cost Silver (mid-level) plans.
  • Launching a state outreach campaign, Get Covered New Jersey, that will result in healthier New Jerseyans obtaining insurance, and therefore a further reduction in premiums and the state’s uninsurance rate.

Middle-Class New Jerseyans Will Pay $3.3 Billion Less in Premiums Over Ten Years 

The New Jersey Department of Banking and Insurance (DOBI) estimates that the new reinsurance program will guarantee that premiums will be 15.1 percent less than they would have been otherwise. Maintaining the federal individual mandate will further reduce premiums by 6.8 percent, for a total reduction of 21.9 percent.[3] In 2019, the average consumer will pay a premium of $5,700 instead of $7,300,[4] a savings of $1,600 which will total at least $23,000 over 10 years (adjusting for inflation).[5]

All 140,000 middle class New Jerseyans in the current market will save a total of $3.2 billion over 10 years compared to what they would have paid.[6] This estimate is conservative as it does not consider an increase in the number of additional individuals who will obtain insurance because of the lower cost nor the savings that will be achieved from the other initiatives outlined in this report.

New Jersey Premiums Will Rank Fourth Lowest in the Nation

Remarkably, premiums for the Silver plan[7] (which is the most popular) will drop from 9th highest in 2014 to 47thin the nation in 2019. The main reason is the growth in premiums in New Jersey is the second lowest in the nation. New Jersey’s increase (9 percent) was eight times lower than the average for all states in the Marketplace (75 percent). Adjusting for inflation, there was essentially no increase in New Jersey. This is in stark contrast to premiums for employer-based insurance in New Jersey, which was fifth highest nationally in 2013 and increased to fourth highest in 2017.[8]

Whereas in 2014 premiums in New Jersey were 18 percent higher than the national average, next year they will be 26 percent lower. New Jersey’s average premium next year will be far less than its neighboring states: Delaware (94 percent less), Pennsylvania (38 percent less) and New York (61 percent less).

New Reduced Silver Plans Could Mean Even More Major Savings 

For the 2019 plan year, DOBI encouraged carriers to offer less expensive Silver plans which could prove to be a game changer for consumers. This year, Silver plans were kept artificially high because insurers had to factor in President Trump’s decision not to fund cost sharing reduction payments even though insurers were still required to maintain the reduction for policyholders. This did not affect consumers who received federal premium subsidies because those subsidies were increased to compensate for the higher premiums. However, consumers who were not eligible for premium subsidies had to pay for the full increase this year. That will not be the case for next year, which will result in several lower cost options. Seven new Silver plans have been added, two of which have the lowest Silver premiums.[9] Overall, the total number of plans off the Marketplace increased to 32 in 2019 from 28 in 2018 mainly due to the increase in Silver plans.

This will mean that the base rate for the lowest premium Silver plan will be reduced to $240 in 2019 from $312 in 2018, a 23 percent reduction.[10] For households that currently have the lowest Silver plans and want to switch plans to continue to have the lowest plans, the savings could be major. A family[11], 27-year-old single adult and 60-year-old single adult could see annual savings of $3,264, $792, and $1,944 respectively.[12] In addition, consumers who have higher cost Silver plans, or have Gold plans, may want to reconsider these new less expensive Silver plans next year even though the cost-sharing likely would be higher.

However, the two lowest cost plans, and three other higher cost Silver plans, will only be available to individuals who purchase insurance off the Marketplace.These plans will not even be listed in the Marketplace. These off the Marketplace options may be found at GetCovered.NJ.gov and purchased directly through carriers.

Premiums Reduced by 14 Percent or More in Half of Plans in Individual Market

DOBI estimates a 9.3 percent[13] average weighted reduction next year for all plans compared to this year. Of course, there will be some plans that exceed this average and those that fall below it. The table below shows the premium reduction in all current plans, which ranges between six and 22 percent, and that half of the plans exceed 14% or more.[14] Bronze plans had the least reduction (10 percent) and the Gold and Silver were similar (12 and 13 percent respectively). The good news is that premiums in the individual market for all middle class New Jerseyans should decrease this year unless their household situation changed. However, as is always the case, consumers should shop around for the best deal possible including new plans that are not listed below.


Endnotes

[1] KFF, Marketplace Average Benchmark Premiums, 2014-2019, https://www.kff.org/health-reform/state-indicator/marketplace-average-benchmark-premiums/?currentTimeframe=0&sortModel=%7B%22colId%22:%22Location%22,%22sort%22:%22asc%22%7D

[2] NJ DOBI, Total Lives Comparison, 2018 and 2019, https://www.state.nj.us/dobi/division_insurance/ihcseh/enroll/2018_1q_ihc_coveredcomparison.pdf

[3] Gov. Murphy’s Office, Governor Murphy Announces Impact of New Jersey’s Actions to Stabilize the Health Insurance Market, 2018. https://www.nj.gov/governor/news/news/562018/approved/20180907a.shtml

[4] The 21.9 percent premium reduction was applied to the projected baseline premium for 2019 in New Jersey Section 1332 State Innovation Waiver-Individual Reinsurance Program, Oliver Wyman, June 27, 2018

[5] Estimate is conservative because as individuals age their premiums go up which was not considered in the analysis.

[6] Same Section 1332 source as above but premium reduction was applied to each of the ten years.

[7] Based on second lowest benchmark Silver plan for a 40-year-old person, https://www.kff.org/health-reform/state-indicator/marketplace-average-benchmark-premiums/?currentTimeframe=0&sortModel=%7B%22colId%22:%22Location%22,%22sort%22:%22asc%22%7D

[8] KFF, Average AnnualSingle Premium per Enrolled Employee For Employer-Based Health Insurance, 2017https://www.kff.org/other/state-indicator/single-coverage/?currentTimeframe=0&sortModel=%7B%22colId%22:%22Employee%20Contribution%22,%22sort%22:%22desc%22%7D

[9] NJ DOBI, 2019 and 2018 New Jersey Individual Health Benefits Plans and Rates, https://www.state.nj.us/dobi/division_insurance/ihcseh/ihcrates_2018.pdfand https://www.state.nj.us/dobi/division_insurance/ihcseh/ihcrates_2019.pdf

[10] Ibid.

[11] Assumes both parents are age 35, one child at 3 and one at 15.

[12] NJ DOBI,  IHC Premium Calculator, https://www.state.nj.us/dobi/division_insurance/ihcseh/IHC_Calculator_2018/IHC.HTM

[13] Gov. Murphy’s Office, Ibid 

[14] Not weighted.

Congressional Threats to Health Programs Could Harm Millions of New Jerseyans

To read a PDF version of this report, click here.

For impact data by congressional district, click here


Heading into the midterm elections, polls have shown that the number one concern of Americans – both Democrats and Republicans – is health care. This concern is understandable, especially in a state like New Jersey, given the millions of people who would be affected by threatened changes in federal health policy, a renewed effort to repeal the Affordable Care Act (ACA), or a scaling back of entitlement programs that are the bedrock of the nation’s safety net. Because New Jersey made the right decision to expand Medicaid under the ACA, repeal of that provision alone would result in the loss of health coverage for 800,000 New Jerseyans. In addition, there are other major threats to Medicare and the entire Medicaid program, as well as to residents who have pre-existing conditions or are uninsured.

The purpose of this report is to provide the facts that show how many New Jersey residents participate in the programs that could potentially be affected by these proposed changes statewide and by congressional districts (attached) using the most recent US census data released last month.Many New Jerseyans in all congressional districts could be affected by all the proposed changes, but the number varies based in the program and the congressional district.

Up to 1.7 million New Jerseyans on Medicaid could lose part or all of their coverage  

Medicaid has already been on the chopping block for the last two years. In legislation to repeal the ACA that almost passed Congress, Medicaid expansion would have been phased out completely, resulting in a half million New Jerseyans losing health coverage. Even worse in the long term, overall funding for Medicaid would have been permanently capped, resulting in the loss of billions of dollars in New Jersey and threatening health coverage for everyone on Medicaid. Because about two-thirds of Medicaid funding is for seniors and people with disabilities, they would most likely have been affected the most by such a major cutback. Also, one out of four children in New Jersey are covered by Medicaid.

Health coverage is threatened for up to 330,000 New Jerseyans who purchased their insurance directly

About 330,000 New Jersey residents rely on the individual market to obtain health care coverage. About 240,000 of them purchased their insurance through the federal Marketplace. It is in this category where most of the federal cutbacks have been made, such as eliminating funding for cost-sharing subsidies, eliminating the individual mandate and a reduction in outreach funds. Repeal of the ACA would result in the loss of coverage for most of these individuals. About 80 percent of all New Jersey residents obtaining health coverage in the federal Marketplace receive federal subsidies which protect them from high premiums. However, about 140,000 New Jerseyans do not receive these subsidies and had to pay for the full twenty percent increase in premiums this year.  Not surprisingly, as a result of these cutbacks, the enrollment in all these plans decreased by about 40,000 over the past year.

Up to 3.8 million New Jerseyans are threatened by proposals to effectively eliminate current protections for preexisting conditions

Protections in the ACA for Americans who have preexisting conditions remains one of the most contentious health issues in Congress. Because polls have shown that this is the most popular provision in the ACA, some Republican members of Congress have been quick to point out that they support continuing this protection. However, most of these same Republicans have supported allowing insurers to exclude essential benefits that these individuals need or to charge any premium they want, which would have the same effect as repealing the protection since virtually no one but the wealthy could afford necessary coverage.  In addition, the Trump administration has recommended in a Texas federal district court case that it invalidate the ACA’s core protections for people with preexisting conditions and allow non-compliant plans that would eliminate the availability of affordable comprehensive coverage. If the Texas court made such an adverse decision, and the Supreme Court upheld it, only an act of Congress signed by President Trump could remedy this problem.

Proposed federal cutbacks in Medicare threaten health coverage for up to 1.5 million New Jerseyans

Medicare is at major risk for cutbacks to offset the massive federal tax cuts that were enacted last year. The tax overhaul, which mainly benefits the wealthy, will deplete the federal revenues required to meet the escalating costs of Medicare, as well as other programs, in the future. Funding for Medicare represents 15 percent of the federal budget; the only other category that is slightly larger is Medicaid. Right after passage of these tax cuts, Republican leaders in Congress began to insist that “entitlement reform” was necessary to make up for these lost revenues. House Speaker Paul Ryan specifically mentioned Medicare as the “the biggest entitlement we’ve got to reform.” Some Republicans have also proposed privatizing Medicare by converting it to a voucher program for new beneficiaries that would limit how much an individual could spend on health care. Democrats, on the other hand, have been very protective of Medicare as it is, and some of them are urging different versions of a “Medicare for All” policy that would greatly expand Medicare for current beneficiaries and make many more Americans eligible.

Many of the 688,000 New Jerseyans who are uninsured could lose any opportunity to obtain health coverage

Remarkably, the ACA reduced the number of New Jersey’s uninsured by about a third. However, that still leaves too many New Jerseyans who are uninsured. About half of the uninsured (338,000 New Jerseyans) are eligible for Medicaid or tax credits under the ACA but would not be if the ACA were repealed or became more restrictive. Many of these eligible New Jerseyans do not seek insurance under the ACA because they do not know they are eligible for subsidies. Under the Trump administration, the open enrollment period was shortened by half and funding for navigators who help the uninsured apply for assistance was cut by about two-thirds. Repeal of the ACA would mean that all of these New Jersey residents would lose any hope of obtaining health coverage and the number of uninsured in New Jersey would jump to about 1.2 million.