LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
ASSEMBLY, No. 590
STATE OF NEW JERSEY
220th LEGISLATURE
DATED: JUNE 30, 2023
SUMMARY
Synopsis: Codifies, and increases under certain circumstances, current minimum
Medicaid per diem reimbursement rates for assisted living residences,
comprehensive personal care homes, and assisted living programs;
makes appropriation.
Type of Impact: No State fiscal impact.
Agencies Affected: Department of Human Services.
Office of Legislative Services Estimate
Fiscal Impact Annual
State Expenditure No fiscal impact
State Revenue No fiscal impact
 The Office of Legislative Services (OLS) determines that the bill will have no revenue or
expenditure impact on the State as the provisions of the bill codify existing State policy.
According to the department, the provisions of the bill, as well as a $20 increase in the existing
per diem rate for assisted living programs, are projected to utilize $6.5 million in State funds
and $6.5 million in federal funds annually.
BILL DESCRIPTION
The bill provides that the minimum per diem rate for Medicaid beneficiaries residing in an
assisted living residence, comprehensive personal care home, or assisted living program will be
$89.50, $79.50, and $69.50, respectively.
The bill also increases the reimbursement rate for an assisted living residence or
comprehensive personal care home based on Medicaid population. Under the bill, in the case of
an assisted living residence or comprehensive personal care home with a population of Medicaid
beneficiaries that is at least:
Office of Legislative Services Legislative Budget and Finance Office
State House Annex Phone (609) 847-3105
P.O. Box 068 Fax (609) 777-2442
Trenton, New Jersey 08625 www.njleg.state.nj.us
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1) 15 percent but less than 30 percent of the total resident population, the per diem rate will be
$99.50 for an assisted living residence and $89.50 for a comprehensive personal care home;
2) 30 percent but less than 50 percent of the total resident population, the per diem rate will be
$104.50 for an assisted living residence and $94.50 for a comprehensive personal care home;
3) 50 percent but less than 70 percent of the total resident population, the per diem rate will be
$119.50 for an assisted living residence and $109.50 for a comprehensive personal care home; and
4) 70 percent up to 100 percent, the per diem rate will be $124.50 for an assisted living
residence and $114.50 for a comprehensive personal care home.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS determines that the bill will have no revenue or expenditure impact on the State as
the provisions of the bill codify existing State policy. Specifically, the bill codifies: 1) the current
minimum per diem reimbursement rates for Medicaid beneficiaries residing in assisted living
residences, comprehensive personal care homes, and assisted living programs, as established in
the FY 2023 Appropriations Act; and 2) the increased per diem rates for assisted living residences
and comprehensive personal care homes based on Medicaid population per the Department of
Human Services Medicaid Newsletter Vol. 32, No. 21. Both of these policies were implemented
as of July 1, 2022. According to the department, these policies, as well as a $20 increase in the
existing per diem rate for assisted living programs, are projected to utilize $6.5 million in State
funds and $6.5 million in federal funds annually.
Section: Human Services
Analyst: Sarah Schmidt
Lead Research 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.).