LEGISLATIVE FISCAL ESTIMATE TO


[First Reprint]

ASSEMBLY, No. 1427


STATE OF NEW JERSEY

 

DATED: JULY 3, 1997

 

      Assembly Bill No. 1427 (1R) of 1996 requires the Commissioner of Health and Senior Services (DHSS) to reimburse Medicaid long-term care facilities for underpayments discovered by audit. The legislation also requires that funds cannot be withheld from long-term care facilities until "after final agency adjudication in a contested case."

      DHSS informally has provided information that the reimbursement cost for an underpayment identified in an audit would be approximately $100,000 annually, or $50,000 State share.

      DHSS also indicates that during the 1994-1996 period, of the 83 audits processed, 20 audits contained underpayments, totaling $2.1 million. However, three audits accounted for approximately $1.4 million of the identified underpayments. Excluding the three audits, the average underpayment for the remaining 17 audits was $41,000, or about $20,500 State share.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67.