RELEASE: February 9 , 2004

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CATASTROPHIC ILLNESS IN CHILDREN RELIEF
FUND EXPANDS ELIGIBILITY TO AGE 21

Governor James E. McGreevey has signed a bill expanding the age eligibility for the Catastrophic Illness in Children Relief Fund. The legislation (S-1965/ACS for A-1319/2336 (Kenny/Little/Heck/Kean/ McHose/ Munoz/Previte/ Scalera), allows families with children up to the age of 21, who have uncovered medical expenses, to apply for assistance.

“The Fund is available when a child becomes ill and the cost of medical care is catastrophic for that family. We are proud that this Fund can now help New Jersey families until the child is 21. We are aware that the population between 18 and 21 is in transition and often their medical expenses can fall through the cracks, leaving them and their families with unmanageable debt,” said Jane Lorber, Chairperson of the Commission.

During 2003, the Commission approved awards exceeding $5 million to help 136 families pay the uncovered expenses associated with their child’s illness. Since it began making awards in December 1989, the Commission has approved some $83 million in assistance to more than 3400 families statewide.

Families of any income can qualify and the Fund does not limit coverage to specific diseases or diagnoses. Eligible medical and related expenses are those not fully covered by insurance, state or federal programs and include hospital and physician bills, medications, medical equipment, psychiatric care, home health care, and specialized home and vehicle modifications.

“We define catastrophic in terms of the economic impact the child’s illness has on the family. We look at how high the uncovered expenses are compared with the family income,” said Ralph J. Condo, Executive Director of the Fund. “A family may have health insurance, but coverage is often inadequate and mounting bills can quickly become catastrophic for a family. In addition, the age group between 18 and 21 may not remain covered by their family’s policy, or may not have employment which offers insurance coverage. Clearly, the age expansion contributes toward meeting the Department of Human Services goal of assisting transitioning, and aging out youth to move on to productive and healthy lives.”

The Fund is collected from an annual surcharge of $1 per employee levied on all employers who are subject to the New Jersey Unemployment Compensation Law. A New Jersey family who earns up to $100,000 is eligible if a child’s unreimbursed medical bills exceed 10 percent of the family’s income. For families who earn more than $100,000, the eligibility is 10 percent of the first $100,000 plus 15 percent of the additional income over $100,000. The child must be 21 years or younger when the medical bills were incurred and expenses must have been incurred during a prior 12-month period.

Families who want more information about the Catastrophic Illness in Children Relief Fund, should call the Family Information Line at 1-800-335-FUND (3863).

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