SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE COMMITTEE SUBSTITUTE FOR

SENATE, No. 5015

STATE OF NEW JERSEY

DATED:  JANUARY 8, 2026

      The Senate Budget and Appropriations Committee reports favorably a Senate Committee Substitute for Senate Bill No. 5015.

      As reported, this committee substitute amends section 7 of P.L.1992, c.160 (C.26:2H-18.57) to provide that, effective the first day of the third quarter of Fiscal Year 2026, and subject to any necessary federal approvals applied for by the Commissioner of Human Services, no facility is to pay an assessment greater than $2,000,000 annually under the assessment enacted and imposed pursuant to paragraph (5) of subsection b. of section 2 of P.L.2025, c.70.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) concludes that the bill will decrease State revenue in FY2026 by $23.3 million.  Of this amount, $7.7 million reflects reductions in revenue collected under the existing ambulatory care facility assessment, commencing on the first day of the third quarter of FY2026, due to the provision in the bill that limits the annual amount that an ambulatory care facility is permitted to pay under the assessment to $2 million.  As the revenues generated under this assessment are used to support Medicaid providers, the remaining amount, or $15.6 million, represents revenue reductions in the form of federal Medicaid matching reimbursements.

      In FY2027 and beyond, when the impact of the bill is annualized, the State’s revenue reduction will grow to $46.4 million annually, $15.3 million due to a decline in revenue collections under the ambulatory care facility assessment and $31.1 million due to reductions in federal Medicaid matching reimbursements.

      This estimate assumes that the State will receive federal approval to implement the provisions of this bill.