STATE OF NEW JERSEY
219th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2020 SESSION
Sponsored by:
Assemblyman DANIEL R. BENSON
District 14 (Mercer and Middlesex)
Assemblywoman CAROL A. MURPHY
District 7 (Burlington)
Assemblywoman VALERIE VAINIERI HUTTLE
District 37 (Bergen)
Co-Sponsored by:
Assemblymen Johnson, Dancer and Assemblywoman McKnight
SYNOPSIS
Supplemental appropriation of $25 million to DOH to assist certain mental health and addiction service providers transitioning to fee-for-service reimbursement system.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
A Supplement to "An Act making appropriations for the support of the State Government and the several public purposes for the fiscal year ending June 30, 2019 and regulating the disbursement thereof," approved July 1, 2018 (P.L.2018, c.53).
Be It Enacted by the Senate and the General Assembly of the State of New Jersey:
1. In addition to the amounts appropriated under P.L.2018, c.53, there is appropriated from the General Fund, unless otherwise specifically indicated, the following sum for the purpose specified:
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45 DEPARTMENT OF HEALTH 20 Physical and Mental Health 23 Mental Health and Addiction Services GRANTS-IN-AID |
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13-4290 Community Services...................................................... |
$25,000,000 |
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Total Funding Category Appropriation, |
$25,000,000 |
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Division of Mental Health and Addiction Services... |
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Grants: |
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13 Behavioral Health Rate Increase……………… |
($25,000,000) |
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Of the amounts hereinabove appropriated for Behavioral Health Rate Increase, $25,000,000 is appropriated to provide supplemental reimbursements to licensed providers of mental health and substance use disorder treatment services who held cost-based reimbursement contracts with the State, and who subsequently transitioned to the fee-for-service reimbursement system. Each supplemental reimbursement shall be equal to the difference, if any, between a provider’s billable revenues under the fee-for-service reimbursement system during FY 2019 and the value of the provider’s most recent annual cost-based reimbursement contract with the State. Only providers who have demonstrated a good faith effort to bill Medicaid for all eligible services shall be entitled for a supplemental reimbursement.
The appropriated funds shall consist of any unspent funds appropriated to mental health and substance use treatment programs within the Department of Health and the Department of Human Services, with additional amounts, as necessary, to be appropriated from the General Fund, subject to the approval of the Director of the Division of Budget and Accounting in the Department of the Treasury.
2. This act shall take
effect immediately.
STATEMENT
This bill makes a supplemental appropriation for fiscal year 2019 of $25 million to the Department of Health to assist certain mental health and addiction service providers who are transitioning to the fee-for-service reimbursement system.
Specifically, the bill authorizes the department to distribute supplemental reimbursements to providers who held cost-based reimbursement contracts with the State, and who subsequently transitioned to the fee-for-service reimbursement system, equal to the difference, if any, between the provider’s billable revenues under the fee-for-service reimbursement system during FY 2019 and the value of the provider’s most recent annual cost-based reimbursement contract with the State. Only providers who have demonstrated a good faith effort to bill Medicaid for all eligible services shall be entitled for a supplemental reimbursement.
The appropriated funds are to consist of any unspent funds appropriated to mental health and substance use treatment programs within the Department of Health and the Department of Human Services, with additional amounts, as necessary, to be appropriated from the General Fund, subject to the approval of the Director of the Division of Budget and Accounting in the Department of the Treasury.
During fiscal year 2017, the Division of Mental Health and Addiction Services began transitioning mental health and addictions services purchased under contract to a fee-for-service reimbursement structure. While the department anticipates that the fee-for-service system will result in more cost-efficiency and improved health outcomes for clients, some providers have warned that the transition will be detrimental to their financial stability, and may force them to curtail services or close down. It is the sponsor’s intent to establish a financial safety net for those providers that lose reimbursement funds during this transition in order to ensure continuity of care for current service consumers.