The federal budget reconciliation package that would repeal key provisions of the Affordable Care Act will have a devastating impact on a half million New Jerseyans insured through the state’s Official Health Insurance Marketplace, Get Covered New Jersey, the state insurance commissioner says.
In a letter to New Jersey’s congressional delegation released Thursday, State Banking and Insurance Commissioner Justin Zimmerman said the federal reconciliation package, if approved, would make it more difficult and more expensive for New Jersey residents to enroll in a healthcare plan through Get Covered New Jersey insurance marketplace.
“The proposed changes before Congress would force the reversal of policies that have significantly helped New Jersey residents and resulted in a record number of people enrolled in coverage,” said Zimmerman, whose department operates the exchange.
“Our consumers are hardworking residents who must purchase private health insurance because they do not have health coverage through their employer, or through programs such as Medicaid or Medicare, and who have depended on stable access to affordable coverage through the Marketplace to keep themselves and their families healthy.”
Zimmerman said if the reconciliation package that passed the House of Representatives on May 22 gets final approval in the U.S. Senate, consumers would experience higher insurance costs, restricted eligibility, a shortened window to enroll in coverage, and increased red tape and paperwork required for enrollment.
The reconciliation package fails to extend enhanced premium tax credits, which expire at the end of the year and have been key to making healthcare affordable for individuals and families, he said. New Jersey would lose more than half a billion dollars in enhanced premium tax credits, and 454,016 New Jerseyans — 88% of Get Covered New Jersey consumers — would see their premiums increase if the tax credits lapse.
On June 20, the Centers for Medicare and Medicaid Services (CMS) finalized a new rule that contains many of the proposed changes in the legislation before Congress. The CMS rule will increase barriers to marketplace coverage for residents, leading to the loss of coverage for New Jerseyans, Zimmerman said.
The New Jersey Department of Banking and Insurance created a fact sheet that further explains the impact of the Congressional reconciliation bill package on New Jerseyans statewide.
