LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
SENATE, No. 2710
STATE OF NEW JERSEY
220th LEGISLATURE
DATED: JUNE 27, 2023
SUMMARY
Synopsis: Establishes three-year sickle cell disease pilot program; appropriates
$10,200,000.
Type of Impact: Three-year State cost increase.
Agencies Affected: Department of Health, Department of Human Services.
Office of Legislative Services Estimate
Fiscal Impact Years 1 through 3
State Cost Increase Up to $10.2 million
 The Office of Legislative Services (OLS) determines that State costs will increase by up to
$10.2 million to implement a three-year sickle cell disease pilot program in select federally
qualified health centers. The bill appropriates $10.2 million for grants to these federally
qualified health centers over the three-year duration of the pilot program.
 The OLS presumes that the Department of Health will base the number of federally qualified
health centers selected to participate in the pilot program, and the amount of funding allocated
to each center, upon the appropriations available under the bill, less any administrative costs
incurred by the department. At minimum, the program will include six federally qualified
health centers located in six specific municipalities.
 To the extent that the pilot program results in routine, comprehensive outpatient care for NJ
FamilyCare enrollees who have a sickle cell disease diagnosis, in place of more costly
emergency room or inpatient hospital care, the State could potentially realize an indeterminate
amount of cost savings under the bill.
BILL DESCRIPTION
The bill requires that the Department of Health, in consultation with the Department of
Human Services, establishes a three-year sickle cell disease pilot program, under which
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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federally qualified health centers will be selected to develop and implement comprehensive sickle
cell disease treatment programs and services. The federally qualified health centers will be
selected for participation in the pilot program based on criteria to be established by the Department
of Health. The competitive selection process will give priority to federally qualified health centers
located in Jersey City, Newark, Paterson, Plainfield, Trenton, Camden, and, subject to the
availability of funds, to federally qualified health centers in certain other municipalities. Federally
qualified health centers selected for the pilot program will be eligible for financial support from
appropriations to the department.
Federally qualified health centers applying for the pilot program are required to develop sickle
cell disease treatment programs and services that provide coordinated, comprehensive, medical,
behavioral health, social support, and monitoring services under the supervision of health care
professionals who have expertise in treating individuals with sickle cell disease. The department
is to coordinate with federally qualified health centers participating in the pilot program and other
health care facilities and health care professionals to establish centers of excellence for sickle cell
disease research and innovation.
The bill appropriates $10.2 million for grants to federally qualified health centers over the
three-year duration of the pilot program.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS determines that State costs will increase by up to $10.2 million to implement the
three-year sickle cell disease pilot program to establish comprehensive sickle cell disease treatment
programs and services at select federally qualified health centers. The OLS presumes that the
Department of Health will base the number of federally qualified health centers selected to
participate in the pilot program, and the amount of funding allocated to each center, upon the
appropriations available under the bill, less any administrative costs incurred by the department.
At minimum, the program will include six federally qualified health centers located in six specific
municipalities. The bill appropriates $10.2 million for grants to these federally qualified health
centers over the three-year duration of the pilot program.
To the extent that the pilot program results in routine, comprehensive outpatient care for NJ
FamilyCare enrollees who have a sickle cell disease diagnosis, in place of more costly emergency
room or inpatient hospital care, the State could potentially realize an indeterminate cost savings
under the bill. Any decrease in NJ FamilyCare expenditures would result in a corresponding
decrease in State revenues, in the form of lower federal Medicaid reimbursements for eligible State
Medicaid expenditures.
Sickle cell disease affects approximately 100,000 Americans, and occurs in one out of every
365 Black or African American births and one out of every 1,600 Hispanic-American births,
according to the federal Centers for Disease Control and Prevention. Based on these data, in FY
2021, the most recent year for which New Jersey State Health Assessment Data are available,
roughly 38 Black or African-American infants born to New Jersey residents will be diagnosed
with sickle cell disease, and fewer than one Hispanic-American infant born to State residents will
receive a sickle cell disease diagnosis.
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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.).