Mercer Government Human Services Consulting

Based on Current Population Survey data from 2004 and 2005, it is estimated that there are currently 1.253 million uninsured people living in New Jersey, of which 242,000 are children.¹ Sixty percent of these children are eligible for State sponsored health coverage either through Medicaid or NJ FamilyCare. Research has well documented that the best way to enroll children is to enroll their parents.

New Jersey has federal approval to enroll parents up to 200% of the federal poverty level (FPL). Meaning a family of four earning $40,000 could qualify for NJ FamilyCare, but several years ago the enrollment of new adults was frozen due to budgetary constraints. The Federal State Children's Health Insurance Program (SCHIP), gives New Jersey sixty-five cents on every dollar invested in NJ FamilyCare. Instead of leaving these available funds untapped, Senator Vitale introduced and was successful in passing the Family Health Care Coverage Act of 2005 to streamline the application process and to once again begin to incrementally enroll parents. Now, parents with a family income up to 115% FPL can enroll in NJ FamilyCare and in September 2007, parents up to 133% FPL will be able to enroll, that is a family of four with an income less then $27,000.

One key component of this reform proposal will take full advantage of federal funding available to New Jersey by fully expanding NJ FamilyCare to parents whose family income falls below 200% FPL, again, a family of four with an income less then $40,000.