CORZINE PRAISES NEW JERSEY LEADERSHIP IN SCHIP BATTLE

Trenton – Governor Jon S. Corzine today praised New Jersey’s congressional delegation for its leadership for a stronger SCHIP program on behalf of the state’s uninsured children. New Jersey’s successful Family Care program currently covers 121,815 children.

“I’m proud to say our Democratic congressional delegation has been out in front on this issue, and Congressman Pallone has led the charge in the House by giving a voice to the disadvantaged children of New Jersey,” said Governor Corzine. “Providing adequate healthcare programs really are preventative medicine because they provide a less burdensome impact on hospital emergency rooms as well as on overall state budgets.”

New Jersey has 10,000 children enrolled in its Family Care program whose coverage would be endangered by the Bush Administration’s proposed regulation to cap eligibility at 250 percent of the federal poverty level. In New Jersey the eligibility level is up to 350 percent.

An August 17, 2007 Bush Administration directive on SCHIP income caps would cost New Jersey an additional $16 million in its first year alone. These direct costs would grow in future years and the actual costs would be amplified because of the burden sicker children place on the state’s health-care system.

Children and families without insurance are less likely to make doctor visits, get chronic care and have regular preventative check-ups.  When health problems arise, uninsured families are more likely to go to a local emergency room for treatment, which drives up overall charity care expenses at hospitals throughout the state. 

“It’s all one big interconnected system,” said Governor Corzine. “It’s cost-efficient for the State and for the taxpayers to invest on the front end by covering more individuals rather than spending it on the back end when the expensive bills pile up at the hospitals. If we get everyone covered, hospitals would not be drained by the costs of the uninsured. In the end, it saves the whole system money.”

Conservative cost estimates for the total societal cost of the uninsured in the U.S. hover at approximately $150 billion per year.

###