New Jersey Governor Announces Low-Cost Health Coverage For Children

New JerseyGov. Jon Corzine (D) on Wednesday announced an agreement with Horizon Blue Cross Blue Shield of New Jersey that will allow families withincomes greater than 350% of the federal poverty level to purchase healthinsurance for their children at significantly lower rates, the NewYork Timesreports.

Under the program, families would pay monthly health insurance premiums toHorizon at the same rate paid by those who qualify for FamilyCare, the state's version of SCHIP (Chen, New York Times, 12/20). Families withone child would pay $137 per month, families with two children would pay $274per month and those with three or more children would pay $411 per month. Bycomparison, a parent would pay $400 per month per child for coverage under theSmall Employer Health Insurance administered through the state Department of Banking and Insurance, according to state Sen. Joseph Vitale (D).The program would not provide health coverage for adults (Livio, Newark Star-Ledger, 12/19).

The program requires that families with more than one child enroll all of theirchildren in the plan. In addition, families must provide proof that theirchildren were uninsured during the previous six months (New York Times,12/19). Between 50,000 and 60,000 children would be eligible for the program,according to Vitale. A Rutgers University study indicated that about 15,000children would enroll, according to state Department of Human Services Commissioner Jennifer Velez (Tamari, Gannett/AsburyPark Press,12/20).

Horizon President and CEO Karen Clark said the company will absorb the cost ofthe program, which she estimated to be up to $1 million in the first year (NewYork Times, 12/20). Horizon spokesperson Tom Rubino said, "We'vegone into this to work with the state to reduce the number of the uninsured.We're going to be meeting with the state about the progress of the plan, andthe ultimate goal is to make it break even" (McCoy, PhiladelphiaInquirer,12/20). Horizon will begin accepting applications in January 2008 (Newark Star-Ledger,12/19).

According to the Times, the program "sets the stage" fora universal health coverage plan for all state residents that would be phasedin over several years, which Corzine and Vitale said could be unveiled as earlyas next month (New York Times, 12/20).

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