New Jersey's subsidized health insurance program for the working poor came under attack in the U.S. Senate this week for being too generous, and state officials rallied to its defense. Governor Corzine traveled to Washington, D.C., on Wednesday to lobby his former colleagues to extend and expand the 10-year-old program, which expires at the end of September. He also urged defeat of Republican amendments that would reduce the federal money New Jersey would get.
| Cost of living variations
New Jersey battled attempts to mandate a single income cutoff for federal health insurance subsidies by arguing that the same amount of money can go much further in some states. This chart shows how much it costs to buy the same goods and services in different areas. Region : Cost Houston, TX: $29,946 Little Rock, AR: $30,610 Atlanta, GA: $32,602 Louisville, KY: $32,669 Indianapolis, IN: $32,669 Tacoma, WA: $35,989 Middlesex, NJ: $41,500 Newark, NJ: $42,463 Bergen-Passaic: $43,060 Oakland, CA: $48,040 Source: Center for Children and Families/Office of Sen. Bob Menendez, D-N.J. * * * CAPITOL GAMES
The Record's Washington correspondent, Herb Jackson, |
The program, known as SCHIP in Washington and marketed in New Jersey as part of FamilyCare, covers about 40,000 North Jersey children and nearly 29,000 of their parents. The federal and state governments split costs, 65-35. The House approved a $50 billion, five-year extension on Wednesday over the objections of many Republicans who said it cost too much and opened the door to socialized medicine. The vote was 225-204, mostly along party lines. "The Democrat SCHIP bill is bad policy developed through bad procedure," Rep. Scott Garrett, R-Wantage, said before voting against the bill. "It will saddle the children of our nation with extraordinary debt."
Two New Jersey Republicans, Mike Ferguson and Frank LoBiondo, joined all of the state's Democrats in approving the extension. The Senate's version would provide an extra $35 billion over five years, and got bipartisan support in committee. But some conservative Republican opponents tried to amend it to trim costs, and several took aim at two areas where New Jersey's program stands out: the income eligibility cutoff and the enrollment of adults.
New Jersey is one of only 11 states that cover adults through the program, which was originally designed only for children and is named the State Children's Health Insurance Program. State leaders contend that offering coverage to parents makes them more likely to enroll their children. Corzine estimated that if the bills moving through the House and Senate become law, New Jersey would be able to insure about half of the 250,000 uninsured children in the state, and another 10,000 to 15,000 adults. Nationwide, supporters believe the expanded funding would lead to coverage of 3 million more children.
Corzine, a Democrat who supports the concept of universal government-supported health coverage, argued it was wrong to think that cutting insurance would somehow save money. "What happens if they don't have insurance is they go to the emergency room, and we pay the highest cost for treating the uninsured?" Corzine asked at a news conference with Senate Majority Leader Harry Reid, D-Nev., and New Jersey's two senators, Frank Lautenberg and Bob Menendez, both Democrats. New Jersey also is the only state that covers children in families that make up to 350 percent the federal poverty limit, or up to $72,275 for a family of four. A Senate amendment to reduce the federal support for all recipients making more than 200 percent of the poverty limit -- which 19 states, including New Jersey, allow -- was defeated by a 37-59 vote Tuesday evening.
Another amendment failed 42-53 Wednesday morning. It would have reduced federal funding for adults in the program to the 50-percent federal Medicaid matching rate instead of the 65 percent SCHIP matching rate. "Both would have hurt New Jersey big-time, and we defeated them," said Menendez. The Senate also killed an amendment Wednesday night, by a 53-43 vote, that would have cut reimbursements to states covering families making more than 300 percent of the poverty level. As written, the amendment would have affected only 3,000 children in New Jersey. But the sponsor. Sen. Jim Bunning, R-Ky., said it was also aimed at New York, which is seeking to raise its threshold to 400 percent.
"Why should people in every other state subsidize government health care for families in New York and New Jersey?" Bunning said before the vote. "If people in these two states think this is a priority, then they should be willing to pay more." Bunning said Tuesday that he opposes the overall bill because it would increase taxes on tobacco, which is grown in his state. Lautenberg noted that while New Jersey gets 55 cents back for every dollar it pays in taxes to the federal government, Kentucky gets $1.45. "It's mean-spirited, and we're going to fight it, and fight it like the devil," Lautenberg said before the vote on Bunning's amendment.
In a floor speech Tuesday night, Menendez argued that differences in the cost of living mean that someone making double the federal poverty limit is much better off in Kentucky than in New Jersey. He cited data compiled by the Center for Children and Families that found the same goods and services that would cost $32,669 in Louisville, Ky., would cost $43,060 in the Bergen-Passaic area of New Jersey. "That's why a one-size-fits-all approach doesn't work," Menendez said. President Bush says he supports extending the program, but proposed only a $5 billion increase over five years and cuts in federal support for adults and states enrolling people making more than 200 percent of the poverty level.
But the Senate bill got bipartisan support in committee last month, and supporters were hopeful Bush would not carry out his veto threat. "Could there be a more worthy cause than trying to get kids to go see a doctor when they're sick?" Reid asked at the news conference with Corzine. "That's what this is all about."