New Jersey Senate Bill S2738

New Jersey 2024-2025 Regular Session

• Introduced: 2/15/24
• Refer: 2/15/24

Caption

Establishes minimum NJ FamilyCare reimbursement rate for certain out-of-state hospitals that provide services to NJ FamilyCare pediatric beneficiaries.

Impact

The bill amends existing laws pertaining to the NJ FamilyCare program, enhancing the standards for network adequacy specific to pediatric care. By setting a minimum reimbursement rate for out-of-state hospitals, it aims to incentivize these hospitals to participate in the NJ FamilyCare program, thereby expanding the options available to pediatric patients requiring specialized care. The proposed regulations will likely lead to improved healthcare access for children who need care from specialized hospitals that may not be available within New Jersey.

Summary

Senate Bill 2738 focuses on establishing a minimum reimbursement rate under the NJ FamilyCare program for certain out-of-state hospitals that serve pediatric beneficiaries. Specifically, hospitals that provide care to at least 10,000 unique NJ FamilyCare pediatric patients each year will receive a reimbursement rate of at least 125% of the Medicaid fee-for-service rate applicable in the state where they are located. This is designed to ensure better access to care for pediatric patients in New Jersey who may require specialized medical services not available locally.

Contention

Notable points of contention surrounding Bill S2738 may arise regarding the implications for state funding as increased reimbursements for out-of-state facilities could put additional pressure on the state's Medicaid budget. Critics may argue that prioritizing out-of-state hospitals could undermine local healthcare systems, especially if the financial resources are not equitably distributed to support facilities within New Jersey. Additionally, some stakeholders might raise concerns about the adequacy and equity of pediatric care available locally versus what is available through these out-of-state providers.