newjerseynewsroom.com

Action affects 1.3 million uninsured residents

BY TOM HESTER SR.

NEWJERSEYNEWSROOM.COM

Gov. Chris Christie Thursday vetoed Democratic-sponsored legislation that would have begun to establish a health care exchange in New Jersey in line with President Obama’s Affordable Care Act.

The creation of health care exchanges in each state is provided for in the act as the way for individuals and businesses to access care and comply with the “individual mandate.”

The governor cited what he sees as the imprudence of imposing obligations on New Jersey citizens while questions of constitutionality are pending with the U.S. Supreme Court.

“I am concerned that a hastily created exchange in New Jersey will impose unnecessary obligations upon the State’s taxpayers,” Christie said. “The very constitutionality of the Affordable Care Act is cloaked in uncertainty, as both the individual mandate to procure health insurance as well as the jurisdictional mandate to establish an exchange may not survive scrutiny by the Supreme Court.”

The veto is the governor first official act to show his opposition to Obama’s health care plan. The Democratic majorities that control the Assembly and Senate do not have the votes to override the veto.

Assemblyman Herb Conaway (D-Burlington), the lead lower house sponsor of the legislation was critical of the governor’s veto and said the health benefits exchange program proposal was designed to provide access to affordable, quality health insurance

“The governor has sent a clear message to the 1.3 million uninsured New Jerseyans and the many others who are underinsured and struggle to afford their existing insurance,” Conaway said. He doesn’t care.

“This legislation would have made quality and affordable health care possible for every New Jersey resident,” the Assemblyman continued. “It would have positioned New Jersey to help working people and small businesses receive billions of dollars in available federal tax credits to purchase insurance coverage.”

Christie noted that in March, just 10 days following the Assembly’s passage of the bill (A- 2171/S-1319), the U.S. Supreme Court began three days of hearings to examine the arguments and questions concerning the lawfulness of both the individual mandate, and the health care exchanges necessary to deliver that coverage.

Christie has previously cited what he sees as the importance – both from a fiscal and health care policy perspective – of waiting until these issues can be resolved before the court.

“Because it is not known whether the Affordable Care Act will remain, in whole or in part, it would be imprudent for New Jersey to create an exchange at this moment in time before critical threshold issues are decided with finality by the Court,” the governor said.

Christie’s veto cites what he sees as a number of concerns and uncertainty within the legislation, a number of which hinge on the outcome of the court’s decision, including but not limited to:

The veto states the legislation:

Commits New Jersey to establishing and operating a new Medicaid-like program for individuals between 133 percent and 200 percent of the federal poverty level, without any assurance of the level of federal funding that will be available to support such a plan.

The mechanism for certifying health plan participation in the exchange limits the pool of plan participants, which will likely reduce options and increase costs.

The composition of the proposed exchange’s board of directors lacks representation by all stakeholders and improvidently provides a salary of $50,000 to each board member, further increasing implementation expense.

Christie argues tha without these and other basic issues regarding the future of the Affordable Care Act decided, it is impossible to know whether the legislation best suits the interests and needs of all of New Jerseyans who will be required to finance these policy choices.