Hiring Freeze and Lack of Medicaid Waiver Snarls N.J. Program to Promote Long-Term Care Insurance for the Elderly

Program to Promote Long-term Care Insurance for the Elderly

The New Jersey Department of Human Services (NJDHS) created a design for a public-private partnership in which policyholders would be covered under Medicaid when private insurance expired, with asset protection equal to the amount of qualified insurance.

The project was part of the Robert Wood Johnson Foundation's (RWJF) national Program to Promote Long-Term Care Insurance for the Elderly.

Key Findings

  • The project was terminated in December 1990 due to:

    • Staffing problems associated with a hiring freeze.
    • Delays and difficulties caused by the inability of the state to obtain a federal waiver of Medicaid requirements.
    • Specific Medicaid eligibility requirements that barred the state from pursuing the option of creating a state plan amendment that would have accommodated a public-private insurance partnership.