Nina Peckman Staff Attorney | Advocates for Children of New Jersey
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B. B. Urness | Mar 20, 2025

Potential Medicaid cuts pose threat to New Jersey healthcare

The New Jersey Department of Human Services has evaluated the potential effects of Congressional budget proposals on Medicaid, particularly concerning provider pay, eligibility, and benefits. These changes could significantly impact thousands of children and families across the state.

Federal funding constitutes a significant portion of NJFamilyCare's $24 billion budget, with over half, or $14 billion, coming from federal sources. Proposed cuts to these funds could threaten essential services, leaving families in difficult positions where they might have to choose between healthcare and basic necessities.

NJFamilyCare currently provides coverage for 1.8 million residents in New Jersey. This includes 830,000 children and 80,000 young adults. The program supports a diverse group of beneficiaries such as children from low to moderate-income working families, those in foster care or adopted from it with special needs, young adults recently aged out of foster care entering the workforce, children living in kinship care arrangements, and those receiving services through New Jersey's Children System of Care.

The services provided under Medicaid are crucial for preventing severe health issues that could be costly if untreated. They include hospital care, primary and specialty physician visits, dental care, prescription drugs, maternal health—which accounts for more than 30% of births in New Jersey—long-term nursing care both in facilities and communities, behavioral health services including mental illness treatment and substance use disorder programs, as well as community-based support for individuals with developmental disabilities.

"ACT NOW: Tell Congress you oppose Medicaid cuts that will affect our most vulnerable citizens," urges an advocacy message highlighting the urgency of public action against these proposed budget reductions.

In totality, 830,000 children rely on NJFamilyCare for their healthcare needs within New Jersey alone. A visual representation suggests that these children form a substantial part of the Medicaid population at risk due to possible funding cuts.

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