In July, the Trump administration proposed a rule change to Medicaid that could reduce access to medical care for more than a million New Jerseyans. The change, which would repeal the current requirement for states to monitor whether the Medicaid reimbursement rate is sufficient, has received little scrutiny despite its implications on health access and outcomes. In response to the rule change, NJPP releases the following statement. 

RAY CASTRO, NJPP DIRECTOR OF HEALTH POLICY:

“The Trump administration’s most recent attack on Medicaid could hit New Jersey harder than any other state in the nation. The proposal would reduce access to medical care for up to 1.7 million seniors, children, people with disabilities, and low income workers who rely on Medicaid as their only source for health coverage. The proposal is a greater threat in New Jersey as the state already has the lowest percentage of doctors in the nation (39 percent) who are willing to participate in Medicaid; further, the state’s reimbursement for all services, as a percentage of the Medicare rate (65 percent), is ranked second lowest in the nation.

“Most health care providers will be harmed by the new rule, but it could have an even greater impact on hospitals, because when consumers have less access to primary care, they end up in the emergency room and drive up charity costs. Unless Congress or the courts overturn this rule and previous administrative actions, the future of the entire Medicaid program is under threat.”

For more information on this proposal, please see NJPP’s blog post: New Proposed Rule Threatens the Future of Medicaid

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