ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 4934

STATE OF NEW JERSEY

DATED:  MARCH 18, 2019

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 4934.

      This bill provides Medicaid coverage to eligible pregnant women for a 365-day period beginning on the last day of a pregnant woman’s pregnancy.  Under current State law, Medicaid coverage for this population is extended for a 60-day period beginning on the last day of the pregnancy. 

      Specifically, the bill extends coverage of Medicaid services to pregnant individuals whose income does not exceed the highest income eligibility level established for pregnant women under the State Medicaid plan - currently 194 percent of the federal poverty level (FPL) - for a 365-day period beginning on the last day of a pregnant woman’s pregnancy.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) estimates that this bill may cause the State to incur indeterminate annual costs to extend the coverage of Medicaid services to certain pregnant individuals from a 60-day period to 365-day period beginning on the last day of a woman’s pregnancy.  An increase in federal Medicaid matching funds approximating 50 percent of the increased expenditures is also likely, assuming that plan amendments or waivers filed by the department in accordance with the bill are approved.  The OLS is unable to quantify this fiscal impact, and notes that the number of applicable beneficiaries and the cost for such beneficiaries’ benefits over the extended postpartum period will determine the actual costs to the State.