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$1.1B

January 30, 2017

It’s not just the nearly 800,000 people in New Jersey who get their health coverage through the Affordable Care Act who would be hurt if the law is repealed without being replaced. Hospitals and health systems across the state would also take a beating, according to data just released by the New Jersey Hospital Association. The NJHA projects that hospitals would lose $1.1 billion through 2019, while post acute-care providers would sustain $325 million in cuts.

The effect on the 249,395 folks in New Jersey covered by marketplace plans and the 546,896 enrolled under Medicaid expansion would be felt across the state.

The NJHA also points out that it would be devastating, and lists a number of potential outcomes, including:

  • A dramatic increase in the demand for charity care; that would be a double blow to hospitals that have seen charity-care funding cut by $350 million in the past two state budgets.

  • An increased reliance on emergency departments to access medical care, which would boost wait times and healthcare costs.

  • The loss of some $4.4 billion in federal matching funds provided under Medicaid expansion.

  • The loss of as much as $795 million in federal subsidies that now help New Jerseyans pay for insurance premiums.

The NJHA also notes that any cuts that come as a result of repealing Obamacare without replacing it would be in addition to the $1.5 billion in funding cuts that Garden State hospitals and health systems have seen since the ACA was established in 2010.

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