New Jersey Keeps Health Care Reform In Its Sights

By: Source: AARP.org Date Posted: 2007-02-23 11:23:11.547663-05:00

AARP New Jersey State President Sy Larson knows that the state must wrestle with many issues in the coming months, but nothing could be closer to the hearts of AARP members than the thorny problem of health care and how it can be reformed.

Larson shook his head in frustration as he related the story of a New Jersey resident suffering from glaucoma, a cautionary tale that illustrates what too many older people face. The man had no insurance and didn't qualify for current government health care programs.

"This gentleman simply couldn't afford his prescription for expensive eye drops so he was rationing them," Larson said. "But this was not a solution. It just meant that he was going blind more slowly."

Fortunately, AARP was able to find a pharmaceutical company to provide the man with a free prescription, but not everyone has such a positive outcome.

"He didn't lose his sight, but we also cannot lose sight of this problem," Larson warned. "Health care is a right and this problem must be addressed by state and federal lawmakers."

More than 1 million New Jersey residents live each day without health insurance coverage and likely hundreds of thousands more are "underinsured," exposing them to potentially terrible financial liabilities in the event of debilitating illness.

These are working people and their families who do not qualify for current government programs because they make "too much" money or are not yet old enough for Medicare. They often delay seeking health care because of the expense, and the problems can escalate, and hospitals end up providing "charity" care in expensive emergency room settings. In fact, state government reimburses hospitals more than $700 million for this care and hospitals insist they are being short-changed.

Working for Change
State Sen. Joseph Vitale (D-Dist. 19), chair of the Senate Health, Human Services and Senior Citizens Committee, is developing a proposal that could cover most uninsured residents in the state who are not insured by Medicare and Medicaid.

"We have more uninsured, people who are sicker, hospitals that are in trouble and a system that is spinning out of control," Vitale said. "This is the beginning of a legislative effort that will bring meaningful reform to New Jersey. We have to begin somewhere. I think we're on the right track."

He hopes to introduce the legislation in spring 2007.

The senator's goals could be costly. A state-funded actuarial review initially estimated $1.7 billion in firstyear operating costs. But Vitale noted that costs would be reduced significantly by new enrollees' premiums, which would be paid by families on a sliding scale, based on income. AARP policy staffers are evaluating Vitale's proposal. Although AARP has not endorsed the program, Larson commended Vitale for seeking solutions to the problems challenging the health care system.

"We have a lot of questions and concerns, but Sen. Vitale's goals are admirable," he said. "We look forward to furthering any efforts to provide health care security and affordability."

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