Office of Legislative Services State House Annex P.O. Box 068 Trenton, New Jersey 08625 Legislative Budget and Finance Office Phone (609) 847-3105 Fax (609) 777-2442 www.njleg.state.nj.us LEGISLATIVE FISCAL ESTIMATE [First Reprint] ASSEMBLY, No. 1996 STATE OF NEW JERSEY 221st LEGISLATURE DATED: JANUARY 30, 2025 SUMMARY Synopsis: Establishes requirements to screen certain people who are pregnant and who have given birth for preeclampsia. Type of Impact: Annual State cost increases; annual State revenue increase; annual cost increase to University Hospital. Agencies Affected: Department of Health, Department of Human Services, Department of Law and Public Safety, University Hospital. Office of Legislative Services Estimate Fiscal Impact Annual State Cost Increase-Educational Campaign $100,000 Annual State Cost Increase-NJ FamilyCare Indeterminate Annual State Revenue Increase Indeterminate Annual Cost Increase to University Hospital Indeterminate The Office of Legislative Services (OLS) concludes that this bill would increase annual State costs by about $100,000 annually for the Department of Health and the State Board of Medical Examiners to develop and distribute educational materials on hypertensive disorders related to pregnancy that certain healthcare facilities and providers are to provide pregnant persons or persons who have recently given birth. This amount is comparable to what the State has spent on the stillbirth prevention public health campaign in each of the three years through FY 2025. Moreover, to the extent that individuals covered under NJ FamilyCare, the State’s Medicaid program, receive additional or more intensive treatment, NJ FamilyCare expenditures would increase by an indeterminate amount annually. These expenditures would be eligible for additional federal Medicaid matching funds, thereby increasing State revenues by an indeterminate amount. There is the potential for annual cost savings under the NJ FamilyCare program if the bill’s requirements were to cause positive health outcomes that reduce future treatment costs. FE to A1996 [1R] 2 University Hospital, an independent non-profit legal entity that is an instrumentality of the State, would incur an indeterminate increase in costs to comply with the requirements established under this bill. BILL DESCRIPTION The bill directs licensed hospitals and birthing centers, federally qualified health centers, and health care practitioners providing care to a pregnant person or to a person who has given birth within the prior 12 weeks, to adopt and adhere to policies requiring the person to be screened for pregnancy-related hypertensive disorders, including postpartum preeclampsia and hypertension, if the person shows symptoms of the condition and has not in the current or recent pregnancy been diagnosed with the condition, or currently is experiencing symptoms. These facilities and health care practitioners are required to provide the person with educational information on pregnancy-related hypertensive disorders and the potential warning signs and symptoms of these disorders; inform the person of the benefits of being screened for such disorders if the person develops any symptoms and that the person should be screened unless the person declines; and inform the person of the benefits of routine home blood pressure monitoring. The department and the State Board of Medical Examiners are to develop and distribute the required educational information to all hospitals, birthing centers, federally qualified health centers, and health care practitioners who treat pregnant and postpartum persons. FISCAL ANALYSIS EXECUTIVE BRANCH None received. OFFICE OF LEGISLATIVE SERVICES The OLS concludes that this bill would increase annual State costs by about $100,000 annually for the Department of Health and the State Board of Medical Examiners to develop and distribute educational materials on hypertensive disorders related to pregnancy that certain healthcare facilities and providers are to provide pregnant persons or persons who have recently given birth. This amount is comparable to what the State has spent on the stillbirth prevention public health campaign in each of the three years through FY 2025. These amounts may vary year-to-year based on need or as best practices are updated and new materials are developed and disseminated. Moreover, to the extent that individuals covered under NJ FamilyCare, the State’s Medicaid program, receive additional or more intensive treatment because of the new educational campaign and the bill’s requirement that certain healthcare facilities and practitioners adopt and adhere to policies requiring screenings for hypertensive disorders related to pregnancy, NJ FamilyCare expenditures would increase by an indeterminate amount annually. The OLS lacks the informational basis to determine how demand for screenings may change as a result of the bill and how much the associated State costs would increase. However, increased NJ FamilyCare expenditures would be eligible for additional federal Medicaid matching funds, thereby increasing State revenues annually, albeit by an indeterminate amount. The OLS also notes that there is the FE to A1996 [1R] 3 potential for annual cost savings under the NJ FamilyCare program if the bill’s requirements were to cause positive health outcomes that reduce future treatment costs. University Hospital, an independent non-profit legal entity that is an instrumentality of the State, would also incur an indeterminate increase in annual costs to the extent it provides additional or more intensive treatment to patients because of the required educational campaign and the requirement that it adopt and adhere to policies requiring screenings for hypertensive disorders related to pregnancy. The OLS cannot surmise how much demand for screenings and treatment would increase in response to the bill to determine the magnitude of the hospital’s cost increases. By way of context, New Jersey has 71 State-licensed hospitals and 23 federally qualified health centers that would be affected by the bill. Data from the New Jersey State Health Assessment Data set show that there were 102,890 births to New Jersey residents in 2022, the most recent year for which data are available. Of this total number, approximately 30 percent, or 30,999 births in 2022, were covered by the Medicaid program. According to the Preeclampsia Foundation, hypertensive disorders of pregnancy affect between five and eight percent of all births in the United States; moreover, the foundation reports that the rate of preeclampsia in the Unites States has risen by 25 percent over the past 20 years. Section: Human Services Analyst: Anne Cappabianca Senior Fiscal Analyst Approved: Thomas Koenig Legislative Budget and Finance Officer This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note. This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).