How 'Big Beautiful Bill' Could Impact Healthcare In NJ

The impact of President Donald Trump signing the "Big Beautiful Bill" into law is set to have a larger impact than experts had thought here in New Jersey when it comes to the loss of federal healthcare coverage and funding.

According to the independent source for health policy research, KFF, New Jersey will see an increase of 3 percent when it comes to the amount of people who would be without health insurance across the state. This number equates to an additional 320,000 people losing coverage. Of these, 270,000 dropped coverages would be due to the changes in Medicaid, and another 56,000 would be as a result of changes to the Affordable Care Act (ACA).

According to the NJ Department of Health and Human Services, this number is actually closer to 350,000 eligible residents who will lose coverage, along with a $3.3 billion annual loss in funding to hospitals and other forms of health resources.

The One Big Beautiful Bill Act, also known as the "Big Beautiful Bill," was passed by the U.S. House of Representatives by a vote of 218-214 on July 3 with two Republican dissenters. The president then signed it into law on July 4.

According to the White House, with the addition of certain tax reductions, the bill is set to save New Jersey families in a median-income home with two kids an average of between $9,400 and $16,400 in take-home pay. It also comes with significant cuts to programs like Medicaid and other healthcare services, however.

Human Services Commissioner Sarah Adelman underscored the impact these moves will have by adding that, "Programs like NJ FamilyCare and NJ SNAP are not just safety nets. They are lifelines...These programs ensure that children receive medical care, that older adults and people with disabilities can live with independence, and that no family goes hungry in a time of need."

NJ FamilyCare, the federal and state-funded health coverage program for residents of any age to get insurance if they do not have it through their employers, would require new work requirements for "able-bodied adults" and more out-of-pocket funding for medical expenses.

The Law

The 1,200‑page package includes:

• A permanent extension to the 2017 Trump tax cuts, while exempting overtime pay, tips and some Social Security income from taxation.
• 80‑hour‑per‑month work requirements on many adults receiving Medicaid and enforce existing SNAP work rules to additional beneficiaries.
• Repealing most clean‑energy tax credits created under the previous administration.
• Approval for a $40 billion border security surge and funding for a nationwide deportation effort.
• Raising the federal debt ceiling by $5 trillion.

Medicaid

• Budget that would cap how much states can collect in hospital assessment fees used to draw federal Medicaid matches, significantly reducing Medicaid spending to help pay for an extension of expiring tax cuts.
• Medicaid is the primary program providing comprehensive health and long-term care to one in five people in the United States and accounts for nearly $1 out of every $5 spent on health care. It is administered by states within broad federal rules and jointly funded by states and the federal government. Restrictions in federal spending could leave states with tough choices about how to offset reductions.
• A new $35 co-payment that can be charged to patients using Medicaid services
• A spokesperson for the Department of Health and Human Services in speaking to Newsweek: "Over the last decade, CMS has reported over $500 billion in improper Medicaid payments. Just last year, $56 billion went to able-bodied adults misusing the system, and more than one million illegal immigrants are now receiving taxpayer-funded health care...The [One Big Beautiful Bill] addresses this directly: it removes illegal immigrants from eligibility, implements work requirements for able-bodied adults, and safeguards Medicaid for the vulnerable populations it was created to serve—pregnant women, children, low-income seniors, people with disabilities, and struggling families."

More On Changes To Healthcare Coverage

According to "Justice In Aging," an organization fighting senior poverty through law, 86 percent of adults between the ages of 50-64 who are enrolled in Medicaid expansion across the United States report having a health condition that prevents them from working. It is estimated that almost half of the adults in this same age group who get their coverage through Medicaid have a documented disability.

KFF estimates that 10 million people will lose health insurance following the signing of the bill nationwide.

MORE FROM PATCH: 'Big Beautiful Bill' Passed By House: What It Means In NJ