NJ Obamacare: Consumers should see premiums fall in ’19

Sept. 07--RED BANK -- The lower premiums were the result of action the state took to beat back President Donald Trump's bid to unravel the Patient Protection and Affordable Care Act, Murphy said.

"Consumers are seeing real and substantial savings," he said.

Murphy made the announcement at a news conference at Riverview Medical Center, where he was joined by administration officials, local lawmakers and hospital executives.

The rates affect about 240,000 New Jerseyans who are covered through the individual market created by Obamacare. Open enrollment for those plans will begin Nov. 1 and last until Dec. 15. It doesn't affect people covered by Medicare, Medicaid or their employer.

In other health care news, see nurses at Jersey Shore University Medical Center in teh video above picket for better staffing.

Obamacare has been the focal point of a fight in the aftermath of President Barack Obama's administration. While Trump and GOP lawmakers stripped away at least some of the key elements of the law, Murphy and the Democratic state Legislature pieced it back together.

"In short, the Murphy team has been hell-bent on re-creating the ACA," said John Sarno, president of the Employers Association of New Jersey, which advises companies on human resources issues.

Most notably, New Jersey reinstated the individual mandate, requiring most residents to have health insurance or pay a fine. It was one of the most unpopular features of the law, but advocates said it helped stabilize the market by ensuring young, healthy consumers would pay into the insurance pool.

While Murphy took aim at the Trump administration, he also got help from it. Seema Verma, administrator of the Centers for Medicare and Medicaid Services, approved New Jersey's request to create a reinsurance program with federal funding, money raised from the mandate penalties, and, if needed the general fund.

The state will reimburse insurers for 60 percent of the claims of high-risk consumers.

The result: New Jersey consumers, who were in line to pay on average 12.6 percent more, should save an average of more than 9 percent instead, Murphy said.

Consumers still could get pinched. The premiums refer to the monthly cost of health insurance. Many of those plans still will have high deductibles, which can force consumers to pay hundreds or thousands of dollars for care before insurance kicks in.

Medical costs nationwide are expected to increase 6 percent next year, according to a report by PwC's Health Research Institute, a consulting firm.

But the Murphy administration said residents need access to high-quality health care that will help them lead healthier lives -- and slow down the rising cost.

"The way it was constructed in New Jersey is this is a stable market, and that's what insurance companies want as well," Murphy said.

Michael L. Diamond; @mdiamondapp; 732-643-4038; [email protected]

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