Human Services FY14: Federal funding bump for expanded Medicaid

TRENTON – New Jersey’s Department of Human Services will see a spike in agency funding in Fiscal Year 2014 thanks largely to federal funding and the Medicaid expansion.

The agency’s commissioner outlined for Assembly lawmakers Tuesday the department’s FY 2014 budget, which calls for a $1.17 billion increase in total funding despite the state contributing roughly $40 million less compared to FY 2013.

State dollars will account for nearly $6.50 billion – compared to $6.54 billion in appropriations last fiscal year – of the agency’s total $15.19 billion budget. Anticipated federal dollars will account for $7.91 billion for the next fiscal year, representing a $1.20 billion spike largely from the governor’s decision to expand Medicaid.

“As you know from the governor’s budget address, New Jersey has opted to expand Medicaid as offered under the federal Patient Protection and Affordable Care Act,” said Jennifer Velez, commissioner of the Department of Human Services.

“This decision ensures that childless adults earning less than 133 percent of the federal poverty level – who did not previously qualify for Medicaid because they were not categorically eligible – will have an opportunity to apply for subsidized health insurance.”

“We estimate there to be approximately 100,000 new enrollees to the program and another 200,000 or so who are eligible today, but for one reason or another have not yet applied,” she said.

Federal funding will cover the total cost of newly eligible enrollees through 2017. It will phase down to a 90 percent federal match of state dollars in 2023.

The Medicaid expansion allows the state to save more than $227 million, according to department officials.

  Human Services FY14: Federal funding bump for expanded Medicaid