ASSEMBLY HUMAN SERVICES COMMITTEE

 

STATEMENT TO

 

ASSEMBLY, No. 4827

 

STATE OF NEW JERSEY

 

DATED:  MAY 18, 2017

 

     The Assembly Human Services Committee reports favorably Assembly Bill No. 4827.

     This bill, designated the “Community Mental Health Safety Net Act,” would hold harmless certain providers of mental health and substance use disorder treatment services through June 2018 as they transition from a cost-based reimbursement contract model to a fee-for-service reimbursement model.

     The Department of Human Services is in the process of transitioning its contracted providers of community-based mental health and substance use disorder treatment services from a cost-reimbursement model to a fee-for-service model.  Under the current plan, providers will be required to transition their contracts no later than July 1, 2017.  This bill would require the department to provide quarterly reimbursements through the entirety of State Fiscal Year 2018 to providers who hold cost-based reimbursement contracts on the effective date of the bill equal to the difference between the provider’s billable revenues during the quarter and one quarter of the value of the provider’s annual cost-based reimbursement contract.

     Additionally, the bill appropriates from the General Fund to the Department of Human Services such amounts as are necessary to effectuate the provisions of this act, subject to the approval of the Director of the Division of Budget and Accounting in the Department of the Treasury.