The Administration’s proposal to cut charity care is sure to have a catastrophic impact on the nearly 1.3 million uninsured residents in New Jersey by deepening the already critical hospital crisis.  

            By law, New Jersey Hospitals are required to provide health care, regardless of an individual’s ability to pay.  In turn, the State is supposed to reimburse those funds…in reality, New Jersey falls far short of its obligation.  In 2008, New Jersey Hospitals will provide $1.3 billion in Charity Care.  They will be reimbursed only $715 million.

            The Administration’s 2008 budget proposed to cut the already paltry  $715 million to $607 million---$108 million less than 2008…and with healthcare costs continuing to rise, the amount of charity care provided by hospitals is just going to go up.  The cuts in charity care lessen the amount of matching federal support by more than $50 million.

            The cuts come at a time when New Jersey hospitals are financially struggling due to chronic under-funding by the government.  In the past 18 months, four acute care hospitals have closed, four more have announced plans to close, and five others have filed for bankruptcy protection. Of the hospitals that remain, nearly half are losing money.

            Not only is this because of the underfunding of the charity care system but, also because of the underfunding of Medicare and Medicaid.

            Medicare is reimbursed at $.89 on the dollar, while Medicaid is reimbursed just $.69 on the dollar, which includes federal matching funds.

            In order to ensure that everyone receives equitable treatment, I have sponsored Assembly Bill 2521, which increases the tax on certain ambulatory procedures which compete with hospitals.  These assessments are deposited in the Health Care Subsidy Fund which has the primary purpose of funding charity care.

            While, I understand the fiscal crisis and applaud the governor’s plan to put New Jersey’s financial house in order, Charity Care is not the place to do it.

            As your Assemblyman, I continue to work on legislation that will not only help protect and preserve New Jersey’s healthcare facilities, but also to ensure the future of quality health care in the State.

            I’m committed to a healthy New Jersey!