Bill Summary – FastDemocracy

LEGISLATIVE FISCAL ESTIMATE
                             [Second Reprint]
                                SENATE, No. 2792
                             STATE OF NEW JERSEY
                              220th LEGISLATURE
                                             DATED: JULY 5, 2023
                                                  SUMMARY
    Synopsis:                   Increases Medicaid reimbursement rates for primary care services;
                                appropriates $20 million.
    Type of Impact:             State expenditure and revenue increase, General Fund.
    Agencies Affected:          Division of Medical Assistance and Health Services, Department of
                                Human Services.
                                       Office of Legislative Services Estimate
    Fiscal Impact                                    One-time                          Annual
    State Expenditure Increase                    Up to $150,000                     $40 million
    State Revenue Increase                              $0                           $20 million
    The Office of Legislative Services (OLS) concludes that the annual State cost increase under
     the bill will be $40 million due to the establishment of increased primary care services rates
     under Medicaid. Subsequently, State revenue will increase by $20 million due to growth in
     federal Medicaid reimbursements, for a net State cost increase of $20 million annually.
    The bill appropriates $20 million from the General Fund to the Department of Human Services
     for the purpose of increasing primary care services rates under the bill.
    The Department of Human Services may incur additional one-time expenditures, in an amount
     up to $150,000, to comply with the reporting requirements of the bill.
                                            BILL DESCRIPTION
    This bill appropriates $20 million in order to increase Medicaid reimbursement rates for
primary care services. Under the bill, the primary care services reimbursement rates associated
with the most frequently used medical billing codes under Medicaid in calendar year 2022 are to
be increased so that each rate is no less than 100 percent of the payment rate that applies to the
      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
                                            FE to S2792 [2R]
                                                    2
same service under Medicare Part B. The Department of Human Services is to determine the
number of primary care services rates increased under the bill such that the annual aggregate
amount of the rate increase is equal to $20 million, as appropriated under the bill, combined with
the anticipated receipt of increased federal Medicaid matching funds.
    The bill directs the department, no later than one year after the effective date of the bill, to
submit a report to the Governor and the Legislature on the implementation of the bill, including
data indicating any changes regarding access to primary care services and the quality of these
primary care services following the rate increases provided under the bill. The report is also to
include any recommendations for further enhancements to the Medicaid rates for these services in
order to improve provider access and quality of care for Medicaid beneficiaries in underserved
areas of the State.
                                        FISCAL ANALYSIS
EXECUTIVE BRANCH
   None received.
OFFICE OF LEGISLATIVE SERVICES
    The OLS concludes that annual State costs will increase by $40 million under the bill, due to
the adoption of increased primary care services rates under Medicaid, as described in the bill.
Subsequently, State revenue will increase by $20 million due to growth in federal Medicaid
reimbursements, for a net State cost of $20 million. The bill appropriates $20 million from the
General Fund to the Department of Human Services for the purpose of increasing primary care
services rates under the bill, and limits the annual aggregate amount of the rate increases to be
equal to this appropriation, combined with the anticipated receipt of increased federal Medicaid
matching funds.
    The Department of Human Services may incur additional one-time expenditures, in an amount
up to $150,000, to comply with the reporting requirements of the bill. This estimate assumes that
no more than one full-time equivalent employee will be needed to fulfill these provisions. To the
extent that the department can use existing staff to produce the report, these costs could be reduced
or eliminated.
  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.).