NJ Faces $5.2 Billion Loss as GOP Proposes Deep Medicaid Cuts Impacting 700,000 Residents
February 25, 2025
New Jersey Governor Phil Murphy's administration estimates that the state could face a loss of up to $5.2 billion annually due to these cuts, significantly affecting vulnerable populations.
Hospitals in New Jersey are projected to face significant financial losses, ranging from $11 million to $650 million across various healthcare networks due to these cuts.
Governor Murphy's administration warns that these cuts will have devastating consequences for both residents and healthcare providers in the state.
These cuts are part of a broader budget proposal that involves a significant reduction of $880 billion from the Medicaid program over the next decade.
The groups most affected by these proposed cuts include children, individuals with autism and disabilities, the elderly, and low to moderate-income adults without employer-provided insurance.
This initiative is part of President Donald Trump's efforts to reduce government spending, which also aims to fund border enforcement and tax cuts primarily benefiting wealthier Americans.
Despite mixed messages from Trump regarding the impact on Medicaid, he has endorsed House Republicans' resolution calling for deep cuts.
Proposed cuts to Medicaid by Congressional Republicans could severely impact healthcare access for approximately 700,000 residents in New Jersey.
Democrats, including Governor Murphy, have opposed the proposed Medicaid cuts, emphasizing the potential harm to vulnerable populations.
A memo from New Jersey's Department of Human Services indicates that Congress may impose stricter income eligibility requirements for Medicaid recipients, further limiting coverage.
Currently, Medicaid serves approximately 1.8 million New Jerseyans, funded by $14 billion from federal sources and $10 billion from the state budget, totaling $24 billion for the current fiscal year.
The proposed cuts are expected to be addressed in Governor Murphy's budget speech scheduled for today, as state officials await clarity on federal decisions.
Summary based on 3 sources
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NorthJersey.com • Feb 25, 2025
Will 700,000 New Jerseyans lose Medicaid coverage? Republicans in Congress weigh big cuts