Justifying the Statewide Medicare for All NJ Bill
Most health reform experts agree that the fairest and most efficient way to improve the U.S. healthcare system is expanded and improved Medicare for All at the federal level. That means current eligibility for Medicare expanded beyond residents 65 years old and up, or residents with certain disabilities, to cover all US residents, regardless of age or employment status. And improved so that traditional Medicare would include health services it currently does not cover, e.g., 20% of Part B costs, most drug costs, vision (with some exceptions), dental, hearing, and long-term care. This outcome would be achieved with the passage of federal bills that Rep Jayapal and Sen Sanders sponsor in Congress (HR3069 and S1506).
Given that the federal legislation is not imminent for many reasons, what can we do at the state level that will achieve universal and improved coverage for NJ residents, and advance us toward the desired federal outcome?
The NJ legislation NJUHC advocates (S426 and A4445 in the current session) provides a simple, economical, and humane path forward. According to the 2022 Eagleton poll NJUHC commissioned, 71% of NJ voters support federal universal coverage. Of those, 93% support an interim state solution if it could be achieved sooner.
Simple
- Every NJ resident has the same primary coverage and the same quality of care.
- The confusion from changes in coverage, costs, options, and open enrollment limitations that occur with every loss or change of employment will be eliminated.
- No networks mean NJ residents can choose any medical professional that accepts Medicare, 97-98% of all physicians nationwide.
- NJ hospitals and medical providers will need only one set of rules for claims and reimbursement rates.
- Unions and employers can cover what Medicare does not. Existing private Medigap plans would also be available.
Economical
- Every NJ resident will be in a network of 34 million people that have traditional Medicare, instead of having many networks of only thousands.
- Medicare’s existing administrative infrastructure will manage health care. It has been in operation for almost 60 years with only 2% overhead.
- Savings realized via a much-expanded risk pool and very efficient management infrastructure will accrue to every employer and individual in the state.
- Savings on coverage for local and state government employees will free up millions of taxpayer dollars for needed government services.
- NJ health professionals and service providers will be able to significantly cut administrative costs because they will no longer submit claims to multiple payers.
Humane
- Distinctions and disparities that currently affect NJ’s 1.54 million Medicaid recipients disappear. Every resident has the same primary health insurance, Medicare. Residents who qualify for NJ Family Care will receive expanded coverage to include all benefits currently available.
- Hospitals will have fewer incentives to abandon low income or rural areas.
- With Medicare as the primary insurer, denials and delays in getting needed care will be much less frequent. Healthcare professionals, not insurance companies, will make decisions about what care is medically necessary.
- No NJ resident will lack health insurance. NJ had over 730,000 uninsured residents in 2025.