TRENTON, NJ – A new bill introduced in the State Legislature would establish a $650 million State medical relief program to assist New Jersey residents who lose health coverage under NJ FamilyCare because of new federal eligibility restrictions.
The proposal directs the Department of Human Services to launch the “State medical relief program,” providing limited funds for outpatient medical care to individuals disenrolled from NJ FamilyCare as a result of provisions in the federal “One Big Beautiful Bill Act” (OBBBA).
The program would provide relief payments through electronic benefits transfer (EBT) cards that could be used for essential medical services such as emergency care, physician visits, behavioral health treatment, and prescription drugs.
Targeted relief for disenrolled NJ FamilyCare members
According to the bill, individuals who lose Medicaid or Children’s Health Insurance Program (CHIP) coverage under OBBBA’s new requirements — including work mandates, more frequent eligibility reviews, or new restrictions on certain qualified immigrants — would qualify for the medical relief program.
Eligible participants would receive an annual benefit, distributed evenly among all participants, with the specific amount set each year by the Commissioner of Human Services based on available state funds. Benefits would remain available for 12 months or until fully used.
Participants would be required to reapply for NJ FamilyCare whenever possible unless their disenrollment was caused by the federal law’s immigrant eligibility changes. Once benefits are exhausted, individuals could choose to pay out-of-pocket for approved medical services at NJ FamilyCare reimbursement rates.
Automatic enrollment and provider participation
The measure directs the commissioner to automatically enroll individuals who lose NJ FamilyCare coverage under OBBBA, unless they opt out. Provisionally enrolled participants would continue to receive full medical relief benefits for up to six months or until their eligibility is confirmed or denied.
Licensed medical providers who wish to participate in the program must register with the Department of Human Services and agree to accept EBT payments at NJ FamilyCare rates for qualifying services.
Establishment of the Medical Relief Fund
To finance the program, the bill creates the New Jersey Medical Relief Fund within the Department of the Treasury. The fund would include legislative appropriations, starting with an initial $650 million, as well as unspent NJ FamilyCare funds resulting from participants shifting to the new program.
The bill’s provisions would take effect October 1, 2026, though the State Treasurer and Human Services Commissioner would be authorized to begin implementation steps before that date.
Key Points
- Bill creates a $650 million State medical relief program for residents losing NJ FamilyCare due to new federal rules.
- Eligible individuals would receive annual EBT-based benefits for outpatient care, prescriptions, and behavioral health services.
- Program begins October 2026 and will be funded through a new Medical Relief Fund managed by the Treasury Department.