Wednesday, June 16, 2010

New Jersey Budget Cuts Affect Seniors


Assembly Democrats rap Senior Services budget cuts

Democratic legislators had harsh words for Gov. Christie's proposed budget on health and senior services Monday, arguing that while the governor had called for "shared sacrifice," his budget would seriously hurt the elderly and other vulnerable citizens.
At the Assembly Budget Committee's 31/2-hour hearing on the Department of Health and Senior Services, Commissioner Poonam Alaigh said the budget decisions had been difficult, but she defended the administration's proposals. Even with 6 percent funding cuts to the department, she said, the budget preserves the core mission of the department, including protecting public health.

Funding for hospital charity care would increase under the budget, she said, along with funding to help seniors remain in home and community-based programs as a cost-effective alternative to nursing-home care.

And Alaigh said that even with the proposed changes, New Jersey would continue to offer among the best health benefits nationwide.

Democratic lawmakers disagreed.

"I don't understand our race to mediocrity," said committee Chairman Louis Greenwald (D., Camden), speaking about proposed changes to New Jersey's low-cost prescription programs for lower-income elderly residents, Pharmaceutical Assistance for the Aged and Disabled and Senior Gold. "This is a program that New Jersey should be proud of."

Legislators said they particularly disliked a proposal to add a $310 annual deductible for the prescription-drug programs and to increase co-payments for brand-name prescriptions from $7 to $15. Co-payments for generic drugs would drop from $6 to $5.

Greenwald predicted that with the increased costs, "we'll see senior citizens rationing drugs, getting sicker, and ending up in emergency rooms and nursing homes for expensive treatment that will cost taxpayers even more."

Assembly Appropriations Chairwoman Nellie Pou (D., Passaic) was one of several lawmakers who noted that increased health-care costs would come on top of cuts to property-tax relief.

"We're talking here about our parents, grandparents, and the cornerstones of our communities who will be out $1,725 in lost property-tax relief and increased prescription-drug fees as people making $500,000 enjoy a $1,630 tax break," Pou said.

Others on the panel echoed those sentiments. "Senior citizens in communities throughout our state are going to feel the sting of this budget while the wealthiest residents enjoy their tax cut," said Assemblyman Albert Coutinho (D., Essex).

Assembly Republican Budget Officer Joseph R. Malone III, of Burlington County, hinted that Christie's proposals were not very different from those offered in previous years by other governors, including Democrats.

"Have you heard about co-pays in the past?" Malone asked Alaigh. "Have you heard about pretty much everything you've heard about today?"

Medicaid co-payments are frequently proposed by New Jersey governors in budget proposals, typically to be dropped by the Legislature under pressure from advocacy groups.

Last year, Gov. Jon S. Corzine called for more than 400,000 low-income residents receiving Medicaid assistance to pay up to $10 a month for prescription drugs. The co-payments were eliminated in the final budget.

"This is the beginning of a process in which I think all of us are going to try to work with you to mitigate any damages done by these suggested cuts," Malone said.

The budget committee also met with Department of Environmental Protection Commissioner Bob Martin yesterday to discuss his department's proposal.


For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

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