New Jersey 2024-2025 Regular Session

New Jersey Assembly Bill A2625

Introduced
1/9/24  

Caption

Excludes certain Medicaid income from gross income tax.

Impact

The bill is designed to encourage more physicians to accept Medicaid patients, which has become increasingly necessary due to the expansion of Medicaid eligibility under the Affordable Care Act. By providing this tax exemption, the bill seeks to improve healthcare access for Medicaid recipients, particularly as the demand for services grows with the increase of insured patients. If enacted, it would bolster the financial framework of medical practices that serve low-income individuals, thus enhancing the overall health landscape of New Jersey.

Summary

Assembly Bill A2625 aims to incentivize medical practices within New Jersey to treat Medicaid patients by excluding certain Medicaid income from gross income taxation. The legislation targets State-licensed physicians engaged in what it defines as 'New Jersey Medicaid practice'. The key provision of A2625 allows for the gross income of qualifying medical practices to not include a proportion of net income derived from eligible Medicaid receipts. This is contingent upon the total quantity of Medicaid receipts compared to the overall income generated from the practice's services within a taxable year.

Contention

While the bill is intended to address the shortage of physicians willing to treat Medicaid patients, there may be concerns about the impact on state revenue due to the tax exemption. Critics could argue that by reducing taxable income for practices, the bill might limit funding for other critical state services that depend on gross income tax. However, proponents counter that improving healthcare access for underserved populations justifies the fiscal adjustments.

Companion Bills

NJ A1024

Carry Over Excludes certain Medicaid income from gross income tax.

Previously Filed As

NJ A1024

Excludes certain Medicaid income from gross income tax.

NJ A5006

Excludes tips from gross income tax.

NJ S3741

Excludes tips from gross income tax.

NJ A1018

Excludes overtime pay of certain employees from gross income tax.

NJ A2621

Excludes overtime pay of certain employees from gross income tax.

NJ HB1710

Income tax; exclude tips from gross income.

NJ A512

Excludes contributions made to certain retirement savings plans under gross income tax.

NJ A5674

Excludes certain retirement savings plan contributions, withdrawals, and rollovers from gross income tax.

NJ A3910

Allows gross income tax deductions totaling $300,000 over five taxable years for certain primary care physicians.

NJ HB143

Income tax; exclude overtime compensation from gross income.

Similar Bills

NJ A1024

Excludes certain Medicaid income from gross income tax.

LA HB393

Provides relative to prescription drug benefits of certain managed care organizations participating in the La. Medicaid coordinated care network program (RE1 INCREASE GF EX See Note)

LA HB1180

Provides for a feasibility study concerning a pharmaceutical and therapeutics committee for Medicaid managed care

NJ S2792

Increases Medicaid reimbursement rates for primary care services; appropriates $20 million.

NJ A4223

Increases Medicaid reimbursement rates for primary care services; appropriates $20 million.

TX SB1435

Relating to providers' rights to due process under the Medicaid program.

LA HB392

Provides relative to continuity of care for newborns enrolled in Medicaid managed care (RE1 SEE FISC NOTE See Note)

LA SB296

Provides relative to reimbursement for pharmacist clinical services in Louisiana's Medicaid program. (gov sig) (EG INCREASE GF EX See Note)