New Jersey

Status of reform effort:  Senator Vitale proposed health reform legislation that passed the legislature on June 23, 2008.  Governor Corzine signed the legislation into law on July 8, 2008.

In December 2007, Governor Corzine (D) announced an expansion of New Jersey FamilyCare, the state’s SCHIP program, which allows children in families with income greater than 350% FPL to buy-in to the program at rates that are lower than what they would pay for comparable private insurance.

In March 2008, Senator Joe Vitale (D) proposed S1557 as a first step toward universal health care coverage for the 1.25 million uninsured in the state, 240,000 of whom are children.  On June 23, 2008, the legislation passed the Senate unanimously and by a vote of 59-18 (with 2 abstentions) in the Assembly.  Governor Jon Corzine (D) signed the bill on July 8, 2008.

The legislation includes the following components:

• Requires all children in the state to obtain private or public health insurance within a year of the bill’s enactment;
• Expands FamilyCare (SCHIP) to parents with incomes up to 200% of the poverty level from the current level of 133%;
• Makes changes to the individual insurance market to promote broader coverage by
• • Allowing insurers to charge older residents three and a half times more for a policy than younger residents as a way to lower premiums for younger residents;
  • Requiring insurers to offer plans in the individual market as a condition of participation in the small employer market.

Next year, Senator Vitale plans to introduce the second phase of his plan to: 

• Require all individuals in the state to obtain health insurance.
• Create Garden State AllCare, a state-funded and state-sponsored health plan.
• Provide subsidies to those who need help affording health care coverage.
• Require employers that do not offer health insurance to offer section 125 plans so that people can purchase health care coverage with pre-tax dollars.

Updated as of 8/19/08