SENATE HEALTH, HUMAN SERVICES AND SENIOR CITIZENS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 4864

with committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 10, 2021

      The Senate Health, Human Services and Senior Citizens Committee reports favorably and with committee amendments Assembly Bill No. 4864.

      As amended, this bill makes an FY 2021 supplemental appropriation of $210,000 to the Department of Human Services (DHS) for a temporary 25 percent increase to certain assisted living facilities in the Medicaid program, which is anticipated to earn a federal match of $528,000.  Currently, P.L.2020, c.90 and the FY 2021 Appropriations Act authorize a 10 percent temporary rate adjustment to nursing facilities.  

      Specifically, under the bill, the FY 2021 reimbursement rate for assisted living residences, comprehensive personal care homes, and assisted living programs with a Medicaid population in excess of 50 percent of the facility’s total number of occupied beds is to be equal to the rate received on September 30, 2020, plus a 25 percent adjustment.  The current rate, under the NJ FamilyCare program, for assisted living facilities is $77 per diem.  Under the bill, the rate for qualifying facilities would increase by $19.25 to $96.25 per day. 

      Each facility is to use no less than 60 percent of the rate adjustment for the sole purpose of increasing wages or supplemental pay for certified nurse aides providing direct care.  The remainder of the rate adjustment is to be used for other costs related to COVID-19 preparedness and response, including enhancing infection control measures, cleaning, reconfiguration of the facility to support cohorting, procurement of personal protective equipment, testing, or other staff wages and needs.

      As reported by the committee with amendments, Assembly Bill No. 4864 is identical to Senate Bill No. 3351 which was also reported by the committee on this date, with committee amendments.

COMMITTEE AMENDMENTS:

      The committee amendments clarify that the provisions of the bill apply to certain assisted living residences, comprehensive personal care homes, and assisted living programs.

      The committee amendments revise the bill to provide that the FY 2021 reimbursement rate adjustment will be applied based on the facility’s total number of occupied beds, as opposed to total population at the facility.

      The committee amendments change references to “assisted living facilities” to “assisted living residences.”