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CATASTROPHIC ILLNESS IN CHILDREN RELIEF FUND GRANTS FINANCIAL AWARDS FOR FAMILIES WITH SICK CHILDREN

TRENTON –In a State House ceremony today, Acting Governor Richard J. Codey brought an annual holiday season gift of hope and good will to many New Jersey families, as he announced the most recent financial grant awards approved by the Catastrophic Illness in Children Relief Fund (CICRF) Commission. “The Catastrophic Illness in Children Relief Fund provides New Jersey families with financial assistance for the uncovered medical bills related to their child's illness,” he said, “making it possible for families to focus on the needs of their children without worrying about their ability to pay for necessary medical care.”

The CICRF awards approved for the first six months of this fiscal year exceed $3.5 million and will help 173 eligible families pay the uncovered expenses associated with their child's illness. “We are helping almost nine percent more families this year than we did during the same period last year,” said Human Services Commissioner James M. Davy. “We are proud that New Jersey can provide this safety net – unique in the United States - for so many families when they face catastrophic medical costs for their child.”

Since the Fund's creation in 1989, it has awarded more than $93 million to over 3,800 New Jersey families, in every county of the state. “By helping families maintain their family life while caring for a sick child and coping with mounting medical bills, the fund does almost as much for the family's state of mind as it does for their finances,” said Jane Lorber, Chairperson of the Commission.

Families of any income may 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 medical expenses are compared with the family income,” said Ralph J. Condo, Executive Director of the Fund. “A family may have health insurance, but coverage often is inadequate, and mounting bills can quickly become catastrophic for a family.” Most families that have been helped by the fund have been working parents with health insurance, but their out-of-pocket expenses were still greater than 10 percent of their income. “The fund helps families weather a financial crisis and return to the routine responsibilities of their lives,” said Condo.

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 family may qualify for the fund's help if a child's unreimbursed medical and related expenses exceed 10 percent of the family's income up to $100,000 plus 15 percent of any excess income over $100,000. The child must have been 21 years or younger when the medical expenses were incurred, and families must be state residents. Expenses must have been incurred during a previous 12-month period, and expenses dating back to January 1988 will be considered.

While the legislation that created the fund protects the anonymity of families applying for help, several families who have received grant awards from the fund were willing to share their experience at today's ceremony.

Families in Attendance on December 15, 2005 :

Darnell and Evelyn Hannah of Neptune, Monmouth County knew they would be faced with home modifications when they adopted their twin daughters Passion and Porsche in March of 2002. Passion, now eight years old, has cerebral palsy as well as developmental delays. She requires assistance with all activities of daily living and uses a wheelchair for mobility. Although insured by Medicaid, the family realized that this type of non-traditional out-of-pocket expense could be considered by the Fund. In their most recent application, the family converted a downstairs room into an accessible bedroom with specialized bathroom to facilitate access and ease of care. They received an award of $25,000 for this renovation. Last year's award of $37,000 went toward the cost of a specialized modified vehicle for transporting Passion.

Keith and Jennifer Brown of Wall, Monmouth County purchased health insurance through COBRA for a short time, prior to Keith getting a new job, which now provides their family coverage. Their daughter Fiona, now 6 years old, was born with a rare heart condition that caused major cardiac defects, an immune system dysfunction, seizures, and developmental delays. Although insured, the Browns had many out-of-pocket expenses for co-payments, deductibles, uncovered expenses and travel. The family applied for 3 consecutive years of uncovered medical expenses (2001-2003) and was approved for each year, totaling more than $21,000. They can reapply to the Fund every year for assistance with Fiona's uncovered medical expenses.

Raymond and Michele Murphy of Mercerville, Mercer County were insured when their daughter Colleen, now age 6, was diagnosed with Leukemia. After beginning aggressive chemotherapy and medical treatment, they later discovered that some of the physicians treating their daughter were not in their insurance network. This expense, coupled with out-of-pocket pharmacy and uncovered hospital bills, became a financial burden to the family. They applied to the Fund and were awarded over $13,000 to relieve them of this debt.

Michael and Arlene Nanni of Waterford, Camden County purchased a specialized, modified van for their son Michael, Jr. who is 9 years old. Michael has a seizure disorder as well as developmental delays and uses a wheel chair for mobility. Although insured, the family still had significant out-of-pocket expenses for pharmacy and disposable medical supplies for Michael's care. The Commission approved an award of over $38,000 to help defray these uncovered expenses.

Carl and Nicole Knop of Brick, Ocean County had health insurance when their daughter Alyssa, now 2 ½, required two surgeries to correct a cleft lip and palate. They did not expect to be left with such a large financial responsibility after insurance settled. Although they managed to make partial payments to many of the providers, they were still left with significant uncovered expenses for hospital and doctors services. After applying to the Fund, they received an award of over $12,000, which not only pays off the outstanding balances, but also reimburses them for most of their out-of-pocket costs as well.

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