Sponsored by:
Senator HOLLY T. SCHEPISI
District 39 (Bergen and Passaic)
SYNOPSIS
Establishes annual cost of living adjustment, based on Consumer Price Index, to base Medicaid per diem rates for assisted living programs; makes appropriation.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning assisted living program Medicaid rates, supplementing Title 30 of the Revised Statutes, and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Commencing on July 1 next following the effective date of this act, and annually thereafter, the Division of Medical Assistance and Health Services in the Department of Human Services shall increase the base per diem reimbursement rates paid to assisted living facilities, comprehensive personal care homes, and assisted living programs for each Medicaid beneficiary under their care to include, at a minimum, a cost of living adjustment. The cost of living adjustment shall be based on the Consumer Price Index data published by the United States Department of Labor in the previous January regarding any increase in the all items index over the immediately preceding 12-month period.
b. As used in this section, “Medicaid” means the Medicaid program established pursuant to P.L.1968, c.413 (C.30:4D-1 et seq.).
2. The Commissioner of Human Services shall apply for such State plan amendments or waivers as may be necessary to implement the provisions of this act and to secure federal financial participation for State Medicaid expenditures under the federal Medicaid program.
3. The Commissioner of Human Services, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall adopt rules and regulations necessary to implement the provisions of this act.
4. There is appropriated from the General Fund to the Division of Medical Assistance and Health Services in the Department of Human Services such sums as are necessary to effectuate the provisions of this act.
5. The act shall take effect immediately.
STATEMENT
This bill establishes an annual cost of living adjustment, based on Consumer Price Index, to the base per diem reimbursement rates paid to assisted living facilities, comprehensive personal care homes, and assisted living programs for each Medicaid beneficiary under their care. The cost of living adjustment is to be implemented on July 1 of each year and to be based on the Consumer Price Index data published by the United States Department of Labor in the previous January regarding any increase in the all items index over the immediately preceding 12-month period. The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
For reference, the base FY 2023 per diem rates for assisted living facilities, comprehensive personal care homes, and assisted living programs are $89.50, $79.50, and $69.50, respectively. Moreover, Consumer price index data released in January of 2023 showed that prices for a range of goods and services rose by 6.4 percent over the previous 12-month period. Applying this increase to the existing per diem rates results in those rates being increased by the following: $5.73, $5.09, and $4.45, respectively.
The bill requires the Commissioner of Human Services to apply for such State plan amendments or waivers as may be necessary to implement the provisions of the bill and to secure federal financial participation for State Medicaid expenditures under the federal Medicaid program. The bill also appropriates from the General Fund to the Division of Medical Assistance and Health Services such sums as are necessary to effectuate the provisions of the bill.