SENATE HEALTH, HUMAN SERVICES AND SENIOR CITIZENS COMMITTEE

STATEMENT TO

SENATE, No. 700

with committee amendments

STATE OF NEW JERSEY

DATED:  DECEMBER 19, 2024

      The Senate Health, Human Services and Senior Citizens Committee reports favorably and with committee amendments Senate Bill No. 700.

      This bill, as amended, establishes the three-year Obstetric Discrimination Prevention and Mitigation Pilot Program in the Department of Human Services (DHS).  Under the program, a number of maternity care hospitals and licensed birthing centers, as determined by the Commissioner of Human Services, will utilize and evaluate the effectiveness of a perinatal quality improvement measurement tool in:  (1) recognizing and reporting obstetric discrimination as an adverse event; (2) providing an evidence-based evaluation of the presence and magnitude of obstetric discrimination and how obstetric discrimination impacts the birthing experiences of Black mothers; and (3) improving the maternal health care provided to Black mothers during childbirth hospitalizations and reducing adverse pregnancy-related experiences and outcomes associated with obstetric discrimination.

      Under the bill, the DHS is to develop a process for maternity care hospitals and birthing centers to apply or otherwise request to participate in the program and identify a perinatal quality improvement measurement tool to be utilized by participating maternity care hospitals and birthing centers.

      The commissioner, in consultation with a content expert, is to determine the total number of maternity care hospitals and birthing centers to be included in the program but at least one hospital or birthing center from each of the northern, central, and southern regions of the State is to be selected for inclusion.  The hospitals and birthing centers selected to participate in the program are to meet the requirements outlined in the bill.

      The program is be funded through the NJ FamilyCare program using a value-based payment methodology.  Payment will be provided to the maternity care hospitals and birthing centers participating in the program for financing the total costs of providing maternity care to the eligible patients under the program.

      The value-based payment rate is to be established by the commissioner, based on factors outlined in the bill, and is to be limited to the rate established by the commissioner.  If the maternity care hospitals and birthing centers participating in the program reduce adverse pregnancy-related experiences and outcomes associated with obstetric discrimination, the hospitals and birthing centers may retain any unexpended payment funds.

      The bill requires the DHS, no later than four years after the date the program is established, to prepare and submit to the Governor and Legislature a report that includes: an analysis on the impact of the program on reducing adverse pregnancy-related experiences outcomes associated with obstetric discrimination; any recommendations for legislative or regulatory action to continue the program on a permanent basis and to improve quality of care and patient safety when providing maternal health care to Black mothers during childbirth hospitalizations; and any other information deemed relevant in evaluating the effectiveness of the program.

      The commissioner will be required to apply for any State plan amendments or waivers as may be necessary to implement the bill’s provisions and secure federal financial participation for State Medicaid or State Children’s Health Insurance Program expenditures under the respective federal programs.

      This bill was pre-filed for introduction in the 2024-2025 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.

COMMITTEE AMENDMENTS:

      The committee amendments transfer responsibility of the three-year Obstetric Discrimination Prevention and Mitigation Pilot Program, established under the bill, from the Department of Health to the Department of Human Services.

      The committee amendments clarify that an eligible patient of the pilot program must be enrolled in the NJ FamilyCare Program.  The committee amendments also clarify that the pilot program will be funded via a value-based payment system though the NJ FamilyCare Program, rather than the State Medicaid program.  The committee amendments define the term “NJ FamilyCare” to mean the program established pursuant to State law, which includes the Medicaid program and the Children’s Health Insurance Program.

      The committee amendments make technical changes to punctuation, syntax, and internal citations.