Justifying the Statewide Medicare for All NJ Bill
Most health reform activists agree that the ideal outcome is to win expanded and improved Medicare for All at the federal level. That means current 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 to include health services that Medicare currently does not cover, e.g., 20% of Part B costs, some drug costs, vision (with some exceptions), dental, hearing, and long-term care. This ideal outcome would be reached with the passage of federal bills that Rep Jayapal and Sen Sanders sponsor in Congress (HR3421 and S1655).
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?
We believe the N.J legislation we advocate (S304 in the current session; A4538 in previous session) provides a simple and easy to understand path forward. It is simple, economical, and humane. The Eagleton poll we commissioned indicates that over 70% of NJ residents support federal universal coverage, and that of those who do, 93% support an interim solution if it could be achieved sooner at the state level.
Simple
- Every NJ resident has the same primary coverage and the same quality of care.
- No networks mean NJ residents can choose any medical professional that accepts Medicare, 97- 98% of all physicians nationwide.
- Every NJ hospital and medical provider follows the same rules and has the same 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 75 million people, 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.
Humane
- Distinctions and disparities that currently affect NJ’s 1.7 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, insurance denials will be much less frequent.
- No NJ resident will lack health insurance. NJ had over 632,000 uninsured residents in 2022.