Ask Members of Senate & Assembly To Sign On To Legislation That Would Protect NJ from Impact of GOP’s Attempts To Repeal National Health Care Plan
TRENTON – Noting that the threat of losing health insurance and Medicaid coverage has not been erased by the repeated failures of President Trump and Washington Republicans to generate enough support to enact a “TrumpCare” plan to replace the Affordable Care Act, Senator Raymond Lesniak and Assemblyman Jamel Holley are seeking the support of every state legislator for their bill that would neutralize the impact on New Jersey of a full repeal of the national health care law.
Reacting to the stated intention to repeal the ACA without a replacement plan, Senator Lesniak and Assemblyman Holley wrote to their legislative colleagues asking them to become co-sponsors of the “TrumpCare Nullification Act,” legislation they introduced to maintain funding for health care coverage in New Jersey by replacing the tax cuts on high income families that would result from the repeal. The legislation, S-3376/A-5053, would impose an equivalent state tax and deposit the revenues in a fund to replace whatever health care coverage is cut, including the approximately 550,000 New Jersey residents who would lose Medicaid benefits.
“Enough is enough,” exclaimed Senator Lesniak. “Repealing the Affordable Care Act without an adequate replacement would devastate New Jersey. The time is now to protect the most vulnerable New Jersey residents from whatever comes from a President and Republican Congress determined to undercut their healthcare coverage.”
“Whether it’s the tax cuts to the top 2% as proposed in the first two TrumpCare proposals, or the tax cuts to pharmaceutical and insurance companies in the latest version, seniors, disabled, veterans, those with pre-existing conditions and low income families should not be deprived of health care coverage and our hospitals and the state budget will not also suffer the consequences,” Assemblyman Holley and Senator Lesniak said in the correspondence. “Hundreds of thousands of our constituents are living in fear day to day as President Trump and Congress continue to threaten their ability to live in peace knowing they have nothing to fear.”
The greatest harm would be caused by repealing the Medicaid expansion, which would terminate health coverage for about 550,000 low-income New Jerseyans and cost the state about $3 billion in federal funds each year. In addition, up to about 300,000 New Jerseyans who signed up for a plan in the Marketplace would lose their coverage, and with it a billion dollars in federal funds that pay for premium subsidies to make insurance affordable.
Senator Lesniak and Assemblyman Holley are asking every legislator to sign on as co-sponsors and urging the leadership of both parties to start the legislative process on the bill.
Under the legislation, all revenue collected will be deposited in a state “Affordable Health Care Fund,” established pursuant to the bill. All funds deposited in the fund are dedicated for the purpose of providing health care coverage under the Medicaid program for individuals who meet the eligibility criteria for the ACA Medicaid expansion.
The specific federal taxes to be replaced by State taxes under the bill are:
· The net investment income tax under 26 U.S.C. s.1411;
· The tax on manufacture and importation of prescription medications under section 9008 of the ACA;
· The health insurance providers’ fee under section 9010 of the ACA;
· The additional 0.9 percent payroll tax on high-income households under 26 U.S.C. s.3101(b)(2); and
· The indoor tanning tax under 26 U.S.C. s.5000B.
No State replacement tax will be imposed except in the event that the federal tax to be replaced is reduced, allowed to expire, or repealed by enactment of federal legislation on or after January 1, 2017.