New Jersey Assembly Bill A3527

New Jersey 2024-2025 Regular Session

• Introduced: 2/5/24
• Refer: 2/5/24

Caption

Establishes annual cost of living adjustment, based on Consumer Price Index, to base Medicaid per diem rates for assisted living programs; makes appropriation.

Impact

The implementation of A3527 is anticipated to positively influence the financial health of assisted living facilities across New Jersey. By mandating annual increases based on the Consumer Price Index, providers will have greater assurance of stable funding, which is essential given the increasing costs of providing healthcare services. The bill directly impacts state Medicaid spending and may necessitate state plan amendments or waivers to secure federal participation in these expenditures.

Summary

Assembly Bill A3527 establishes an annual cost of living adjustment (COLA) to the base per diem reimbursement rates paid to assisted living facilities and similar programs for Medicaid beneficiaries. This adjustment will be based on the Consumer Price Index data published each January by the United States Department of Labor, reflecting any increases over the previous 12-month period. As such, the bill aims to ensure that the financial support provided to these facilities keeps pace with inflation and the rising cost of living, which is particularly critical for the sustainability of care for vulnerable populations.

Contention

While A3527 is widely supported for its intent to support assisted living programs, potential points of contention could arise concerning its fiscal implications. Critics may argue that the appropriations needed to fund these increases might strain state budgets or divert resources from other essential services. Furthermore, debates may center around the accuracy and reliability of the Consumer Price Index as a measure for determining appropriate funding levels, as well as discussions on how these reimbursements will affect overall care quality and access for Medicaid beneficiaries.