LEGISLATIVE FISCAL ESTIMATE TO

[First Reprint]

SENATE, No. 80

STATE OF NEW JERSEY

DATED: May 17, 1996

      Senate Bill No. 80 (1R) of 1996 repeals P.L.1950, c.303 (C.44:8-146), which requires municipalities within counties of the first class to pay inpatient hospital costs for General Assistance (GA) recipients. Additionally, municipalities in other counties would no longer have the option to voluntarily pay for such hospitalization costs. However, the bill would allow special hospitals licensed by the Department of Health (DOH) to be reimbursed for any inpatient costs for GA recipients because special hospitals are not eligible to receive charity care reimbursement from the Health Care Subsidy Fund. Reimbursement would be effective July 1, 1996.

      The Department of Human Services (DHS) and the Office of Management and Budget have not provided any fiscal information on the legislation.

      The Office of Legislative Services (OLS) is not able to estimate the cost associated with reimbursing special hospitals for inpatient costs of GA recipients, as no data are compiled on GA hospitalization costs since the State stopped paying for such costs in FY 1992.

      OLS notes that DHS had provided information on Assembly Bill No. 2534 of 1993, that the cost to reimburse special hospitals for inpatient costs of GA recipients was between $647,000 and $693,000 per year. While OLS is not able to verify or refute this estimate, it is assumed that DHS reviewed GA hospitalization claims and isolated those claims involving special hospitals in developing that estimate.

      The legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

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