SENATE, No. 80

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Senators BASSANO and CODEY

An Act concerning inpatient hospitalization for general assistance recipients and repealing P.L.1950, c.303.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. The State shall pay inpatient hospitalization costs for a recipient of general public assistance pursuant to P.L.1947, c.156 (C.44:8-107 et seq.) who is admitted to a special hospital licensed by the Department of Health which is not eligible to receive a charity care subsidy from the Health Care Subsidy Fund established pursuant to P.L.1992, c.160 (C.26:2H-18.51 et al.) and to which payments were made prior to July 1, 1991 on behalf of patients receiving general public assistance.

    2. P.L.1950, c.303 (C.44:8-146 et seq.) is repealed.

    3. This act shall take effect immediately and is retroactive to July 1, 1991.

STATEMENT

    This bill repeals P.L.1950, c.303 (C.44:8-146 et seq.), which requires municipalities within counties of the first class to pay inpatient hospitalization costs for recipients of general public assistance (GA). Additionally, municipalities in other counties would no longer have the option to voluntarily pay for these hospitalization costs. The bill will continue to permit payments for inpatient hospitalization costs for GA recipients who are admitted to a special hospital licensed by the Department of Health which is not eligible to receive a subsidy from the Health Care Subsidy Fund, and to which payments were made prior to July 1, 1991 on behalf of patients receiving GA benefits.

    In FY 1991, approximately 300 GA recipients received hospitalization benefits, per month, for a gross State/municipal cost of $34.6 million (the State paid 75% and the participating municipality paid 25% of the cost). Municipalities in Essex, Bergen and Hudson counties were required to participate, but municipalities such as Camden and Atlantic City also paid for hospitalization of their GA recipients.

    The repeal of P.L.1950, c.303 in this bill accords with the budget language in the FY 1992 through FY 1995 appropriations acts which denies reimbursement to hospitals for services provided to GA recipients. Thus, the only provision in this bill which would have a fiscal impact on the State is the requirement that special hospitals be reimbursed for GA recipients retroactive to July 1, 1991. According to an OLS fiscal note prepared for this legislation, special hospitals would receive approximately $2.6 million in reimbursement for the FY 1992 through FY 1995 period, based on average annual costs of $650,000 (as estimated by the Department of Human Services); however, this amount might be reduced if the special hospitals were obligated to provide charity care under the federal Hill-Burton Act (Pub.L.79-725 and subsequent amendments to that law) and wrote off costs on behalf of GA clients in this manner.

Eliminates reimbursements by designated municipalities for inpatient hospitalization costs for general assistance recipients.