New Jersey 2022-2023 Regular Session

New Jersey Senate Bill S3742

Introduced
3/30/23  

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

Upon implementation on July 1 of the year following the bill's enactment, the Division of Medical Assistance and Health Services will automatically adjust these reimbursement rates based on the CPI data published the previous January. For example, current base rates are set at $89.50 for assisted living facilities, $79.50 for comprehensive personal care homes, and $69.50 for assisted living programs. Adjustments derived from the CPI in 2023 suggest increases of approximately $5.73, $5.09, and $4.45 respectively, directly addressing inflation pressures impacting these care facilities.

Summary

Bill S3742, introduced in the New Jersey Legislature, establishes an annual cost of living adjustment to the base Medicaid per diem rates for assisted living programs. This adjustment will be based on the Consumer Price Index (CPI), allowing for an increase in the reimbursement rates paid to assisted living facilities and comprehensive personal care homes for each Medicaid beneficiary. The aim is to ensure that these facilities can continue to provide necessary services without financial strain from rising operational costs.

Contention

There are potential points of contention regarding the bill's financial implications, particularly concerning the appropriations from the General Fund needed to support these adjustments. The Commissioner of Human Services is tasked with seeking any necessary state plan amendments or waivers to secure additional federal financial participation for these Medicaid expenditures. Some stakeholders may express concerns over whether these funding changes will adequately address the increasing costs associated with providing quality care in assisted living facilities.

Companion Bills

No companion bills found.

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