SENATE HEALTH COMMITTEE

STATEMENT TO

SENATE, No. 1814

with committee amendments

STATE OF NEW JERSEY

DATED: MARCH 20, 1997

      The Senate Health Committee reports favorably Senate Bill No. 1814 with committee amendments.

      As amended by committee, this bill prohibits the Division of Medical Assistance and Health Services in the Department of Human Services or its fiscal agents from recovering a claim asserted against a Medicaid provider until after a final agency adjudication in accordance with the "Administrative Procedure Act." Under current law, the division may recover a disputed claim before the claim is heard before an impartial body.

      The bill also requires the Commissioner of Health and Senior Services to pay or credit a Medicaid long-term care facility for any net amount found to be owing to the facility as a result of an audit. Under current law, the commissioner's reimbursement of any underpayment is discretionary.

      The committee amended the bill to change the reference from the Commissioner of Human Services to the Commissioner of Health and Senior Services in section 2 of the bill, as the Department of Health and Senior Services is now responsible for administering long-term care services under the Medicaid program.