The New Jersey state government has warned that 350,000 New Jerseyans could lose their insurance benefits due to Medicaid cuts under President Donald Trump’s massive tax cut law.
On the 3rd, the state Department of Human Services issued a statement saying, “With the passage of the massive tax cut bill in the federal Congress today, massive cuts to Medicaid have become a reality. As a result, it is estimated that about 350,000 people, or about 20% of New Jersey’s Medicaid subscribers, will lose their health insurance benefits.”
The state Department of Human Services expressed concern that “the federal government’s Medicaid budget cuts will result in a loss of $3.6 billion for New Jersey’s $24 billion Medicaid program budget,” and “New Jersey taxpayers’ burden will increase, and it will be more difficult to receive medical services.”
In May, New York Governor Kathy Hokule warned that if large-scale Medicaid cuts become a reality, about 1.5 million people in New York could become uninsured, and the New Jersey government also expressed concern that hundreds of thousands of people could lose their health insurance benefits.
The so-called “One Big Beautiful Bill” signed by President Trump on the 4th includes a provision to cut the federal government’s Medicaid-related spending by about $1 trillion over the next 10 years.
With changes such as adding work requirements to Medicaid eligibility and banning illegal immigrants from enrolling, Medicaid beneficiaries in New York and New Jersey will also be affected. Specifically, a new work requirement will be added to Medicaid enrolment conditions starting in 2027.
Adults between the ages of 19 and 64 will need to prove that they have worked or volunteered at least 80 hours per month or enrolled in an education program to maintain their Medicaid enrolment. In addition, the eligibility verification for Medicaid enrolees will be strengthened from once a year to twice a year. Also, starting in October 2028, those earning more than 100% of the federal poverty line will have to pay up to $35 out-of-pocket for some medical services.
President Trump and the Republican Party, who led the large-scale tax cut bill, say that this measure is inevitable, saying, “It will reduce waste related to the Medicaid program and prevent healthy adults from abusing the system.” However, the Democratic Party is fiercely criticizing it, saying, “Millions of Americans will lose health insurance and have difficulty receiving medical services.”