New Jersey Gov. Phil Murphy signed a bill into law Nov. 1 that increases Medicaid financial resources for certain hospitals and establishes a hospital fee pilot program.
Four things to know:
1. The bill — sponsored by New Jersey Sens. Joseph Vitale and Teresa Ruiz, along with New Jersey General Assembly Speaker Craig Coughlin — establishes a voluntary five-year pilot program. Through the pilot program, eligible counties could implement a fee on currently undefined medical procedures at hospitals in their regions, according to NJ Spotlight. Hospitals in participating counties would then receive revenue back, as New Jersey would use proceeds from the fees to secure additional federal Medicaid money.
2. Counties eligible to participate, based on the law's criteria, are: Atlantic, Passaic, Essex, Hudson, Camden, Middlesex and Mercer. Eligible counties have large proportions of low-income people and hospitals that treat large numbers of Medicaid patients, according to the report. They also have 250,000 or more residents.
"While Medicaid is the safety net that prevents low-income New Jerseyans from falling through the cracks, hospitals need to be well-funded and supported to properly deliver expert care to the community they serve," Mr. Vitale told NJ Spotlight.
"This pilot program will expand the resources for Medicaid and funnel funds into those facilities that ensure the disadvantaged continue to receive the quality care they need," he said.
3. Money generated through the fees would go to the New Jersey Department of Human Services, which oversees the state's Medicaid program. According to the report, the money would then be available for federal Medicaid matching dollars, and the department would use the new local and federal revenue to increase Medicaid payments to hospitals in participating counties.
4. All plans and plan changes must be approved by CMS.
Access the full NJ Spotlight report here.
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