Pallone Denounces Devastating Impact of Republicans' Default on America Act on Health Care, Contrasts With Democrats' Coverage Protections

NEW BRUNSWICK, New Jersey, May 3 -- Rep. Frank Pallone Jr., D-New Jersey, issued the following news release on May 2, 2023:

Congressman Frank Pallone, Jr. (NJ-06) held a press conference today at Chandler Health Center to underscore the devastating impact House Republicans' Default on America Act would have on Americans' health care coverage. House Republicans are fabricating a crisis to justify passing the dangerous bill, which passed on a party line vote in the House last week. It would kick millions of Americans off their health care and cut $109 billion from the Medicaid program.

Republicans' attempts to undermine Medicaid stand in stark contrast to Pallone's efforts to strengthen the program. He fought for and secured important Medicaid and Children's Health Insurance Program (CHIP) provisions in a federal funding bill that was signed into law last December. As Chairman of the Energy and Commerce Committee last Congress, he led the Democratic effort to extend CHIP funding for two years, provide eligible children with 12 months of continuous health care coverage, and allow states to permanently provide 12 months of postpartum care for new moms.

The Default on America Act would impose burdensome and unnecessary work requirements on Medicaid beneficiaries, which Republicans hope will result in people losing their eligibility for the health care program. Studies show that work requirements do not increase employment and actually make it more difficult to stay employed as workers become sicker after losing access to health care. Currently, the majority of adults who rely on Medicaid have jobs, in many cases multiple part-time jobs that do not offer health insurance, while those who are not employed generally have caregiver responsibilities, are dealing with health issues, or are experiencing other barriers to employment.

"Last Congress, I fought for incredibly important improvements to Medicaid that will make meaningful differences in the lives of Americans. Unfortunately, House Republicans are manufacturing a crisis to justify cruel cuts that will raise costs for American families and kick millions of people off their health insurance," Pallone said. "The Default on America Act Republicans passed last week cuts $109 billion from Medicaid and creates a dangerous and unnecessary ultimatum, which will have devastating consequences for Americans. The contrast between Republicans and Democrats could not be clearer, and I'm going to continue to fight these cuts and Republicans' harmful legislation. This cruel game Republicans are playing with our economy and the health care so many rely on must end."

"With leadership and support from Congressman Pallone, Democrats secured many important health care and consumer protection measures in the omnibus bill signed by President Biden. From extending telehealth to continuous eligibility for children under Medicaid and the Children's Health Insurance Program to major investments in mental health care and substance abuse disorder treatments, these are meaningful policies that will improve lives," New Jersey Human Services Commissioner Sarah Adelman said. "These provisions will help countless New Jerseyans. That's where our focus must be - investing in and protecting health care and on creative new approaches as we're doing here in New Jersey under Governor Murphy. We should not be putting critical services at risk for New Jersey residents."

"Medicaid is the nation's public health insurance program for low-income families. It is our largest payor for the underserved population. Unfortunately, most Medicaid enrollees lack access to other affordable health insurance options. Medicaid covers a broad array of health and dental services and limits enrollee out-of-pocket costs. We are glad Congressman Pallone continues to support this vital program so many families in New Jersey depend on," said Sandra Hill, Executive Director, Chandler Health Center.

"As rising cost of living from corporate greed squeezes our communities, the GOP wants to take health care away from ordinary people and give more tax breaks to big corporations," said Laura Waddell, NJ Citizen Action, Health Care Program Director. "Over 2.2 million New Jerseyans rely on Medicaid for health care, and 444,000 New Jersey households rely on SNAP to make ends meet. Work requirements would threaten these Americans' ability to meet basic, life-sustaining needs, especially older and disabled Americans, while doing nothing to boost employment. Congress should be focused on making the ultra-wealthy and corporations pay their fair share, not putting more financial strain on everyday people."

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Original text here: https://pallone.house.gov/media/press-releases/pallone-denounces-devastating-impact-republicans-default-america-act-health