JCMAN320
March 16th, 2008, 07:18 PM
Universal health plan: 'This is the moment'
N.J. lawmakers set to introduce bills
Sunday, March 16, 2008
BY SUSAN K. LIVIO
Star-Ledger Staff
Lawmakers intend tomorrow to unveil a long-awaited plan that would require all New Jersey residents to have health coverage within three years, and officials say it would be financed in part by converting the mammoth Horizon Blue Cross Blue Shield of New Jersey to a for-profit company.
The proposal, which would make New Jersey only the fourth state in the nation with a universal health care law, could begin enrolling the state's 1.4 million uninsured residents as early as August, its sponsors in the Legislature say.
"The right time to do this was a long time ago," said Sen. Joseph Vitale (D-Middlesex), who has been crafting the plan with a health care think tank for 18 months. "I don't think I have to sell it to the public. They more than understand the significance of health care and fear they will lose theirs if, God forbid, they get sick."
The plan's first phase calls for expanding the successful FamilyCare program, which already provides insurance to 200,000 low-income children and working poor parents and is paid for by the state and federal Medicaid programs, said Assemblyman Neil Cohen (D-Union), who is sponsoring the bill in the Assembly with Louis Greenwald (D-Camden).
"This is going to be the time for hard decisions," Cohen said. "This is the moment."
To make the giant leap into creating a universal health care program, lawmakers are counting on a windfall -- estimated at $1 billion to $2.5 billion -- that would be generated by allowing Horizon Blue Cross Blue Shield to convert to a for-profit company, according to two officials familiar with the plan.
The officials, who did not want to be identified because details on the Horizon conversion were not finalized, said those details will not be part of the bill introduced tomorrow. They said this would be worked out at a later date, noting that money from a Horizon deal wouldn't be needed until the final stages of the phase-in.
State officials have been discussing a possible conversion of Horizon, which has 3.2 million members, for more than a decade. The conversion would require approval from Horizon officials and could face up to 15 months of red tape from state regulators.
Daniel Emmer, a spokesman for Horizon Blue Cross Blue Shield of New Jersey, denied there have been any recent discussions about making the company a for-profit venture. "Any conversations around conversion are coming from people outside the company," Emmer said. "Horizon BCBSNJ has not changed its position. Conversion is not being considered."
The money would refund the state for nearly 70 years' worth of tax breaks Horizon received as a nonprofit. It would be used to keep the cost of insurance premiums low, so people who have to buy a policy could afford one, the two officials said.
Vitale declined to discuss other details of the bill. He did say, however, that much of the plan would mirror a blueprint he unveiled in late 2006. He would not say how much the initial state cost would be, but he stressed it would be dramatically lower than the $1.7 billion he estimated in 2006.
Under that plan, residents would be required to prove they have medical insurance, just as drivers must get auto insurance. Taxpayers would need to file proof of insurance with their state income tax.
Those who don't have coverage would join a state-subsidized plan, and uninsured patients who show up at emergency rooms would be enrolled automatically. Cohen said emergency rooms and schools would provide the "captive audience" to find people who need health insurance.
In addition, employers who don't offer coverage would be expected to establish pre-tax accounts and deduct premiums from workers' paychecks. Businesses would not be asked to contribute any money to create the program.
Gov. Jon Corzine, who has repeatedly said he supports Vitale's efforts and wants to enact a universal health care program, will not comment before the bill is introduced, according to his spokesman Jim Gardner.
Universal health care is being tried only in Massachusetts, Maine and Vermont. Each has enacted laws and is in various stages of implementing programs.
In New Jersey, the concept is strongly endorsed by AARP, which last week released a poll showing a vast majority of its members believe all state residents should have access to "affordable, quality health care."
"While the devil is in the details, AARP is willing to support public policies that expand health coverage that is affordable, adequate and shares the responsibility among individuals, employers and government," said Douglas Johnson, AARP-NJ government affairs manager.
'THOUGHTFUL APPROACH'
The New Jersey Business and Industry Association, which has strongly opposed lawmakers' effort to enact a paid family leave bill, is more welcoming to universal health care.
Christine Stearns, the association's vice president for health and legal affairs, praised Vitale for his "thoughtful approach" by building on FamilyCare and focusing on families.
"We support the idea that everyone has coverage -- the difficult part is how you get there," Stearns said. "You can't have a discussion about a mandate until you ensure there is an affordable option. As I understand it, the senator has identified unexpended funds in the budget which they can use to leverage federal funds."
Vitale sponsored FamilyCare a decade ago, and a smattering of smaller health care initiatives have been advanced over the past two years. But 1.4 million people have consistently lived without health insurance this decade. About 265,000 of them are children.
A law enacted in 2006 that would permit young adults to receive health coverage from their parents until age 30 has resulted in the enrollment of 12,000 people, state Department of Banking and Insurance spokesman Marshall McKnight said.
In December, Corzine and Horizon announced a plan allowing parents to buy a low-cost policy through FamilyCare. The object was to provide insurance to 50,000 children who don't have it. Enrollment began in January. At the start of April, only 14 children will be enrolled, said Emmer, the Horizon spokesman.
Vitale said these numbers show chipping away at the problem isn't working.
"If we don't do anything dramatic, it's going to get worse each and every year," he said.
Staff writer Joe Donohue contributed to this report. Susan K. Livio may be reached at slivio@starledger.com or (609) 989-0802
N.J. lawmakers set to introduce bills
Sunday, March 16, 2008
BY SUSAN K. LIVIO
Star-Ledger Staff
Lawmakers intend tomorrow to unveil a long-awaited plan that would require all New Jersey residents to have health coverage within three years, and officials say it would be financed in part by converting the mammoth Horizon Blue Cross Blue Shield of New Jersey to a for-profit company.
The proposal, which would make New Jersey only the fourth state in the nation with a universal health care law, could begin enrolling the state's 1.4 million uninsured residents as early as August, its sponsors in the Legislature say.
"The right time to do this was a long time ago," said Sen. Joseph Vitale (D-Middlesex), who has been crafting the plan with a health care think tank for 18 months. "I don't think I have to sell it to the public. They more than understand the significance of health care and fear they will lose theirs if, God forbid, they get sick."
The plan's first phase calls for expanding the successful FamilyCare program, which already provides insurance to 200,000 low-income children and working poor parents and is paid for by the state and federal Medicaid programs, said Assemblyman Neil Cohen (D-Union), who is sponsoring the bill in the Assembly with Louis Greenwald (D-Camden).
"This is going to be the time for hard decisions," Cohen said. "This is the moment."
To make the giant leap into creating a universal health care program, lawmakers are counting on a windfall -- estimated at $1 billion to $2.5 billion -- that would be generated by allowing Horizon Blue Cross Blue Shield to convert to a for-profit company, according to two officials familiar with the plan.
The officials, who did not want to be identified because details on the Horizon conversion were not finalized, said those details will not be part of the bill introduced tomorrow. They said this would be worked out at a later date, noting that money from a Horizon deal wouldn't be needed until the final stages of the phase-in.
State officials have been discussing a possible conversion of Horizon, which has 3.2 million members, for more than a decade. The conversion would require approval from Horizon officials and could face up to 15 months of red tape from state regulators.
Daniel Emmer, a spokesman for Horizon Blue Cross Blue Shield of New Jersey, denied there have been any recent discussions about making the company a for-profit venture. "Any conversations around conversion are coming from people outside the company," Emmer said. "Horizon BCBSNJ has not changed its position. Conversion is not being considered."
The money would refund the state for nearly 70 years' worth of tax breaks Horizon received as a nonprofit. It would be used to keep the cost of insurance premiums low, so people who have to buy a policy could afford one, the two officials said.
Vitale declined to discuss other details of the bill. He did say, however, that much of the plan would mirror a blueprint he unveiled in late 2006. He would not say how much the initial state cost would be, but he stressed it would be dramatically lower than the $1.7 billion he estimated in 2006.
Under that plan, residents would be required to prove they have medical insurance, just as drivers must get auto insurance. Taxpayers would need to file proof of insurance with their state income tax.
Those who don't have coverage would join a state-subsidized plan, and uninsured patients who show up at emergency rooms would be enrolled automatically. Cohen said emergency rooms and schools would provide the "captive audience" to find people who need health insurance.
In addition, employers who don't offer coverage would be expected to establish pre-tax accounts and deduct premiums from workers' paychecks. Businesses would not be asked to contribute any money to create the program.
Gov. Jon Corzine, who has repeatedly said he supports Vitale's efforts and wants to enact a universal health care program, will not comment before the bill is introduced, according to his spokesman Jim Gardner.
Universal health care is being tried only in Massachusetts, Maine and Vermont. Each has enacted laws and is in various stages of implementing programs.
In New Jersey, the concept is strongly endorsed by AARP, which last week released a poll showing a vast majority of its members believe all state residents should have access to "affordable, quality health care."
"While the devil is in the details, AARP is willing to support public policies that expand health coverage that is affordable, adequate and shares the responsibility among individuals, employers and government," said Douglas Johnson, AARP-NJ government affairs manager.
'THOUGHTFUL APPROACH'
The New Jersey Business and Industry Association, which has strongly opposed lawmakers' effort to enact a paid family leave bill, is more welcoming to universal health care.
Christine Stearns, the association's vice president for health and legal affairs, praised Vitale for his "thoughtful approach" by building on FamilyCare and focusing on families.
"We support the idea that everyone has coverage -- the difficult part is how you get there," Stearns said. "You can't have a discussion about a mandate until you ensure there is an affordable option. As I understand it, the senator has identified unexpended funds in the budget which they can use to leverage federal funds."
Vitale sponsored FamilyCare a decade ago, and a smattering of smaller health care initiatives have been advanced over the past two years. But 1.4 million people have consistently lived without health insurance this decade. About 265,000 of them are children.
A law enacted in 2006 that would permit young adults to receive health coverage from their parents until age 30 has resulted in the enrollment of 12,000 people, state Department of Banking and Insurance spokesman Marshall McKnight said.
In December, Corzine and Horizon announced a plan allowing parents to buy a low-cost policy through FamilyCare. The object was to provide insurance to 50,000 children who don't have it. Enrollment began in January. At the start of April, only 14 children will be enrolled, said Emmer, the Horizon spokesman.
Vitale said these numbers show chipping away at the problem isn't working.
"If we don't do anything dramatic, it's going to get worse each and every year," he said.
Staff writer Joe Donohue contributed to this report. Susan K. Livio may be reached at slivio@starledger.com or (609) 989-0802