PressofAtlanticCity.com
July 23, 2009
Ben Leach

While President Barack Obama's proposed health care-reform bill is still a work in progress, a new study is already anticipating how many millions of Americans could be covered under the act if passed.

A nonprofit organization called Families USA released a study Tuesday that breaks down how many people in each state would gain coverage as a result of the bill passing. The study used census data from 2006 and 2007 to determine how many uninsured people resided in each state.

According to the study, about 664,000 people in New Jersey could gain insurance under the plan by 2013, with more than a million gaining insurance by 2019.

The Congressional Budget Office estimates the bill would add coverage for 23 million Americans by 2013 and 37 million by 2019.

"Clearly, every state small or large has a great deal to gain," said Kim Bailey, senior health policy analyst for Families USA.

In addition to those who would gain health insurance, those who already have private health insurance could see their premiums come down, according to Bailey.

An earlier study by Families USA found that an average American family paid a "hidden health tax" of $1,017 in 2008 that was passed on by care that was provided to the uninsured. The number was calculated from the $116 billion spent by hospitals, doctors and other providers to cover the health expenses of the uninsured.

About 1.3 million people in New Jersey were uninsured in 2006 and 2007, according to data from the U.S. Census Bureau.

Solving New Jersey's insurance crisis is something that private companies want to solve, but the cost could have unintended consequences.

Horizon Blue Cross Blue Shield of New Jersey is the state's largest private health insurance company with 3.6 million people in its coverage network. The company wants to see more people in New Jersey have access to health insurance, according to Tom Rubino, a spokesman for Horizon.

But Rubino said the company is worried about the potential consequences, such as the creation of a one-payer system.

"This would gut private health insurance," Rubino said. "It would mean delays in care, decline in care, rationing of care."

Rubino explained that the bill proposed by the U.S. House of Representatives talks about creating a Medicare-like system, where a public insurance policy would pay hospitals less than the actual cost of care.

Those additional costs would be passed onto private insurance companies, according to Rubino. This would drive up the cost of private insurance, forcing people to enroll in the government plan.

The state's Department of Health and Senior Services is following the health reform bill closely.

"We really, really hope the House reform passes in some form," said Eliot Fishman, director of policy for New Jersey's DHSS.

Because the fate of the bill is not certain, Fishman said people who are currently uninsured in New Jersey should look at a number of options.

For example, the federal stimulus program granted subsidies toward Consolidated Omnibus Budget Reconciliation Act health care coverage, or COBRA health insurance. COBRA is a form of health insurance that is available to people who are not enrolled in another health plan, typically because they recently lost a job.

The average premium for families under COBRA was about $1,278 per month in 2008.

The state is also looking to expand its NJ Family Care program, which currently provides health coverage for children and certain low-income adults.