Summary of Key Aspects of Senator Vitale's Universal Coverage Proposal

(Ev Liebman)

On Monday, March 17, 2008 Senator Vitale (D-Middlesex) held a Press Conference at the Trenton Statehouse to announce his healthcare reform proposal. He was joined by Assemblymen Greenwald, Singer, and Cohen as well as David Knowlton, CEO of the Health Care Quality Institute (HCQI). (Sen. Vitale's healthcare bill (S-1557) was introduced on Monday, April 7, 2008.)

Ev Liebman, NJCA Director of Organizing and Advocacy, provided an overview of Senator Vitale's healthcare proposal as laid out in his White Paper.

Some primary concerns include:

1) Affordability: Is the FamilyCare Program affordable for people at certain income levels (particularly below 350%FPL)? There has been some discussion of raising subsidies, but nothing definite.

2) Shared Responsibility: No employer mandate. Employers who do not currently offer healthcare coverage would be required to set up Section 125 accounts to allow employees to pay premiums and other out-of-pocket costs with pre-tax dollars. In White Paper, Section 125 accounts do not appear to apply to employers who already provide coverage.

3) Enrollment Strategy: Not clearly identified in White Paper. Families would be enrolled at points of service (i.e. schools). NJ could improve on current enrollment levels in FamilyCare. NJ has lower enrollment levels than neighboring states such as NY and PA.

4) Quality of Care: The quality and breadth of coverage is unclear.

5) Financing: Increased enrollment in FamilyCare is to be funded by the surplus in existing Medicaid and Medicare budgets. It is unclear exactly how much money is in these accounts and whether the funds are available. Also, Sen. Vitale plans to redirect current Charity Care dollars to provide insurance for the uninsured. However, his plan does not include undocumented residents who will continue to go to emergency rooms and strain the State's Charity Care system.