NJ Faces $5.2 Billion Loss as GOP Proposes Deep Medicaid Cuts Impacting 700,000 Residents

February 25, 2025
NJ Faces $5.2 Billion Loss as GOP Proposes Deep Medicaid Cuts Impacting 700,000 Residents
  • 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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