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NJ Considers Expansion of State's Medicaid Program

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PRINCETON, N.J. – Gov. Chris Christie is considering expanding the state's Medicaid program, which would provide another health-care option to more than 300,000 currently uninsured New Jerseyans. Supporters of the proposal believe the move makes a lot of fiscal sense.

Jeff Abramo, associate state director of communications for AARP New Jersey, says the prospect of extensive federal funding would make the program a winner for the state.

"For two years, the state will receive about $2 billion in federal funding annually to pay for the program. In subsequent years, when the state will have to chip in 10 percent, the health-care savings the state will experience as a result of the program will likely more than offset the costs."

Its backers also say expanding the Medicaid program throughout New Jersey would provide a much-needed boost to the state's sagging economy by creating health-care jobs. Abramo says AARP's view is that it would help workers across all industries be able to maximize their productivity.

“Medicaid expansion will ultimately result in newly insured workers taking advantage of the preventive care options that will become available to them. This would keep them healthier, spending more time at work and spending less time off due to illness. This is why we think that it's so critical that Gov. Christie expand New Jersey's Medicaid program.”

Abramo says expanding Medicaid also is expected to pay other dividends. Providing this coverage option would result in fewer uninsured residents using emergency rooms for care, resulting in fewer taxpayer-funded charity-care reimbursements to hospitals. That would mean dollars saved and, ultimately, an improved quality of hospital care throughout the state.

Under the federal Affordable Care Act, each state has the option of whether to expand the eligibility for its Medicaid program.