TRENTON, N.J., December 5 – The bill mandating expanded health insurance coverage for alcoholism, drug abuse and mental health (see related story on www.Insurance-Advocate.com) faces possible veto by the governor because the costs for it may be four times as much as originally stated.

The argument about the costs exploded publicly after the bills sponsor, Senator Joseph Vitale (D-Middlesex), accused the governors staff of attempting to defeat passage by using higher cost estimates.

Despite this rare show of disunity between Democrats and the Democratic Governor Jon Corzine, the measure, S807, did pass 29-9, and was sent to the Assembly where it now faces an uncertain future.

The questioning of the costs by the administration could well stall action in the Assembly, or force amendments to the original bill to lower the costs.

Originally, the state Treasury Department estimated it would cost the state insurance plans $4.5 million. It was disclosed that the new cost estimate is $15.6 million.

A Treasury Department spokesman said the division of pension and benefits made the original estimate based on only one of the health plans offered by the state instead of all of them.

Scare Tactics

Vitale said the new estimates were fabricated, and that these estimates were sent to Republicans to cause trouble for the bill the weekend before it was put up for a vote before the 40-member Senate.

Anthony Coley, a spokesman for the governor, denied the administration had leaked the figures to Republican lobbyists, according to one published report.

Despite the surprise public outburst and differences in costs, the bill easily passed, though eight Republicans and one Democrat did vote against the measure.

Vitale and Senator Barbara Buono (D-Middlesex), the sponsors, said the proposal would give parity insurance coverage for alcohol and drug addition and mental treatment.

Both said opponents to the measure used scare tactics by spreading fears about inflated costs being hidden in the legislation.

They said a key section of their legislation is the inclusion of inpatient and outpatient care, detoxification, screening and assessment, and non-hospital residential treatment of mental health patients and those addicted to drugs and alcohol.

The sponsors also said the measure calls for treatment as long as is necessary, and that it would be handled the same as treating a fracture or heart ailment, instead of the existing coverage of a limited number of days for inpatient and outpatient care.

Business groups, as well as Republican senators, said it would increase health care costs to the state and harm the economy.

Senator William Gormley (R-Atlantic) said the state should not be increasing costs at a time its governor and Legislature are studying how to cut costs and lower property taxes.