FISCAL NOTE TO

[First Reprint]

SENATE, No. 80

STATE OF NEW JERSEY

DATED: NOVEMBER 27, 1996

Bill Summary:

      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 and Senior Services to be reimbursed for any inpatient costs for GA recipients, as special hospitals are not eligible to receive charity care reimbursement from the Health Care Subsidy Fund. Reimbursement would be effective July 1, 1996.

Agency Comments:

      The Department of Human Services (DHS) and the Office of Management and Budget have estimated the cost of reimbursing special hospitals for the inpatient costs of GA recipients at $446,400, $464,256 and $482,826, respectively, in each of the next three fiscal years.

Office of Legislative Services Comments:

      As the provisions of Senate Bill No. 80 (1R) have been incorporated into the FY 1997 appropriations act through budget language within the DHS, Division of Family Development budget, there is no additional cost to the State in FY 1997. By the end of FY 1997, assuming that special hospitals submit reimbursement claims on a timely basis to the appropriate municipalities, special hospital expenditure data may be available to enable the State to determine FY 1997 costs and to estimate FY 1998 and FY 1999 costs. (Hospitals may submit claims for reimbursement up to a year after the service was rendered. Thus, actual FY 1997 claims expenditures at special hospitals may not be known until the end of FY 1998.)

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