New Jersey Budget Cuts Would Tighten Eligibility Enrollment for New Enrollees

New Jersey health officials want to tighten eligibility requirements for new Medicaid enrollees, part of Gov. Christopher Christie's administration's effort to save $300 million by reforming the state healthcare program, according to a Forbes report.

Under the new proposal, new adult enrollees who earn more than $5,317 per year for a family of three would not be eligible for coverage. The proposed salary requirement is around one-fifth of the current income cap. The proposal would also move shift participants from fee-for-service plans into managed care and require a $25 co-pay when hospital emergency rooms are used for non-emergency treatment.

The change could exempt 23,000 uninsured adults from Medicaid eligibility, according to the report. Democrats say the $300 million in cuts to Medicaid will deny care to the state's neediest residents.

Medicaid is jointly funded by the federal and state government, and while each state sets its own requirements and benefits, states must apply to the federal government for a waiver before implementing significant changes. According to the report, the state of New Jersey spends almost $5 billion a year, an amount similar to that paid by the federal government.

This change would not mark the first time New Jersey has curbed enrollment, according to the report. In 2001, the state halted enrollment for childless adults, which number around 30,000 across the state. The state implemented additional eligibility reductions in 2002 and 2010.

Read the Forbes report on New Jersey Medicaid enrollment restrictions.

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