LEGISLATIVE FISCAL ESTIMATE

[Second Reprint]

ASSEMBLY, No. 1996

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: MAY 22, 2025

 

 

SUMMARY

 

Synopsis:

Establishes requirements to evaluate certain people who are pregnant and who have given birth for preeclampsia.

Type of Impact:

Annual State cost increase, annual State revenue increase.

Agencies Affected:

Department of Human Services, Department of Health, Department of Law and Public Safety.

 

 

Office of Legislative Services Estimate

Fiscal Impact

 

 

Annual State Cost Increase – NJ FamilyCare

Indeterminate

 

Annual State Revenue Increase

Indeterminate

 

 

·         The Office of Legislative Services (OLS) concludes that, to the extent that individuals covered under NJ FamilyCare, the State’s Medicaid program, receive additional or more intensive treatment under the bill, 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.

 

 

BILL DESCRIPTION

 

      The bill directs licensed birthing centers, federally qualified health centers, and health care practitioners providing prenatal care to a pregnant person or postpartum care to a person who has given birth within the prior 12 weeks, to adopt and adhere to policies requiring the person to be evaluated for hypertensive disorders related to pregnancy preeclampsia, including, but not limited to, postpartum preeclampsia and hypertension if the person shows symptoms of the condition and has not in the current or recent pregnancy previously been diagnosed with the condition, or is currently experiencing symptoms.  Evaluation tools are to be based on best practices and guidance, as determined by the American College of Obstetricians and Gynecologists or another nationally-recognized body.

      Licensed birthing centers, federally qualified health centers, and health care practitioners providing prenatal and postpartum care are required to:  provide the person with evidence-based information on pregnancy-related hypertensive disorders, including potential warning signs and symptoms; inform the person of the benefits of being evaluated for such disorders if the person develops symptoms, and that the person should be evaluated, unless the person declines; and, discuss the evaluation results with the person and, if applicable, develop an evidence-based treatment plan to minimize the person’s risk from pregnancy-related hypertensive disorders.

      The bill directs the Commissioner of Health, the State Board of Medical Examiners, and any other agency or board that regulates health care practitioners to promulgate rules and regulations to implement the provisions under the bill.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS concludes that, to the extent that individuals covered under NJ FamilyCare, the State’s Medicaid program, receive additional or more intensive treatment because of the bill’s requirement that certain healthcare facilities and practitioners adopt and adhere to policies requiring evaluations for pregnancy-related hypertensive disorders, annual NJ FamilyCare expenditures would increase by an indeterminate amount. The OLS lacks the informational basis to determine how demand for such evaluations may change as a result of the bill and by how much the associated State costs would increase.  However, increased NJ FamilyCare expenditures would be eligible for additional federal Medicaid matching funds, thereby increasing annual State revenues, albeit by an indeterminate amount.  The OLS also notes that 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.

      The OLS concludes that the Department of Health, the State Board of Medical Examiners, and the State Board of Nursing will utilize existing resources to promulgate rules and regulations necessary to implement the bill’s requirements.

      By way of context, New Jersey has 70 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.).