Christie Vetoes Health Care Exchange Legislation

Gov. Chris Christie

TRENTON – Citing the imprudence of imposing obligations on New Jersey citizens while questions of constitutionality are pending with the Supreme Court of the United States, Gov. Chris Christie today vetoed legislation that would have begun to establish a health care exchange in New Jersey in line with the federal Affordable Care Act.

The creation of health care exchanges in each state is provided for in the Affordable Care Act as the vehicle for individuals and businesses to access care and comply with the “individual mandate.”

“I am concerned that a hastily created exchange in New Jersey will impose unnecessary obligations upon the State’s taxpayers,” Christie said. “The very constitutionality of the Affordable Care Act is cloaked in uncertainty, as both the individual mandate to procure health insurance as well as the jurisdictional mandate to establish an exchange may not survive scrutiny by the Supreme Court.”

In March of this year – just 10 days following the Assembly’s passage of Assembly Bill 2171 – the Supreme Court of the United States began three days of hearings to examine the arguments and questions concerning the lawfulness of both the individual mandate, and the health care exchanges necessary to deliver that coverage.

Christie has previously cited the importance – both from a fiscal and health care policy perspective – of waiting until these issues can be resolved before the Supreme Court.

“Because it is not known whether the Affordable Care Act will remain, in whole or in part, it would be imprudent for New Jersey to create an exchange at this moment in time before critical threshold issues are decided with finality by the Court,” Christie said.

The Governor’s veto cites a variety of concerns and uncertainty within the legislation, including:

  • The bill commits New Jersey to establishing and operating a new Medicaid-like program for individuals between 133% and 200% of the federal poverty level, without any assurance of the level of federal funding that will be available to support such a plan.
  • The bill’s mechanism for certifying health plan participation in the exchange limits the pool of plan participants, which will likely reduce options and increase costs.
  • The composition of the proposed exchange’s board of directors lacks representation by all stakeholders and provides a salary of $50,000 to each board member, further increasing implementation expense.

Primary sponsors of A-2171 include Assemblymembers Herb Conaway, Jr. (D-Burlington, Gloucester), Troy Singleton (D-Burlington, Gloucester), Upendra Chivukula (D-Middlesex, Somerset) and Ruben J. Ramos, Jr. (D-Hudson).

“On behalf of the many thousands of Americans for Prosperity citizen activists and millions more opponents of this unprecedented federal assault on our liberties, I applaud Gov. Christie for using his veto pen today to thwart the federal takeover of our health care in New Jersey,” said Americans for Prosperity state director Steve Lonegan.

“Gov. Christie is cutting off a lifeline for hundreds of thousands of New Jerseyans who desperately need health insurance,” said U.S. Sen. Frank R. Lautenberg (D-NJ).  “This is an example of the Governor putting his tea-party driven national aspirations ahead of the health of residents of our own state.  The insurance exchange would give small businesses and uninsured New Jersey residents access to affordable health care coverage, but the Governor’s continued drive to the far right of American politics has hurt our state once again.”

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