Bill Summary – FastDemocracy

LEGISLATIVE FISCAL ESTIMATE
                             [Second Reprint]
                               ASSEMBLY, No. 4620
                             STATE OF NEW JERSEY
                              220th LEGISLATURE
                                          DATED: DECEMBER 8, 2023
                                                  SUMMARY
    Synopsis:                   Requires DHS and State Board of Medical Examiners to develop and
                                implement process to improve efficiency of reviewing NJ FamilyCare
                                provider applications.
    Type of Impact:             Potential State cost and revenue impacts.
    Agencies Affected:          Department of Human Services.
                                Department of Law and Public Safety, Division of Consumer Affairs.
                                       Office of Legislative Services Estimate
    Fiscal Impact                                              Annual
    Potential State Cost Impact                              Indeterminate
    Potential State Revenue Impact                           Indeterminate
    The Office of Legislative Services (OLS) concludes that any additional State costs under the
     bill could likely be absorbed by resources currently available to the Board of Medical
     Examiners in the Division of Consumer Affairs. This is because, in recent years, revenues
     collected by the Board of Medical Examiners have routinely surpassed the Board’s annual
     expenditures.
    The OLS assumes that to the extent that State costs increase in order to develop and implement
     a process to improve the efficiency of reviewing NJ FamilyCare provider applications, the
     Division of Consumer Affairs would increase the licensure fee charged to individuals seeking
     licensure to practice medicine in the State.
    Any additional costs borne by the Department of Human Services would be in the form of
     increased contract payments to Gainwell Technologies, the NJ FamilyCare contracted systems
     administrator, which is also responsible for NJ FamilyCare provider enrollment. Because State
     Medicaid administrative costs are eligible for federal Medicaid reimbursements, the State
     would be responsible for 50 percent of any increased NJ FamilyCare administrative costs,
     pursuant to the bill.
      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 A4620 [2R]
                                                2
                                    BILL DESCRIPTION
    Within 365 days of the bill’s effective date, the Division of Medical Assistance and Health
Services in the Department of Human Services, in collaboration with the State Board of Medical
Examiners, is required to develop and implement a process to improve the efficiency of the process
by which NJ FamilyCare provider applications are reviewed.
    Under the bill, the State Board of Medical Examiners will provide the division with a copy of
an applicant’s medical license number, within five days of issuing the license to the applicant. If
the applicant is not approved for licensure, the State Board of Medical Examiners will provide the
division with the appropriate documentation within five days of its determination.
    The bill directs the division, to the extent possible, to immediately begin to process the portion
of the application regarding NJ FamilyCare provider enrollment. Within 10 days of receiving an
applicant’s license number from the State Board of Medical Examiners, the division will notify
the applicant, in writing, of any additional information or documentation required by the division
to enroll the applicant as an approved NJ FamilyCare physician.
                                     FISCAL ANALYSIS
EXECUTIVE BRANCH
   None received.
OFFICE OF LEGISLATIVE SERVICES
    The OLS concludes that any additional State costs under the bill could likely be absorbed by
resources currently available to the Board of Medical Examiners in the Division of Consumer
Affairs. This is because, in recent years, revenues collected by the Board of Medical Examiners
have routinely surpassed the Board’s annual expenditures.
    In response to an FY 2024 OLS Discussion Point, the Department of Law and Public Safety
provided information illustrating that the Board of Medical Examiners has transferred funds to the
Division of Consumer Affairs to offset costs associated with the division’s activities in support of
the board; since FY 2015, the board has transferred annual amounts ranging between $0.5 and
$18.5 million to the department for this purpose. According to the department, the Division of
Consumer Affairs utilizes funds transferred from various professional boards, including the Board
of Medical Examiners, to fill staff vacancies within the professional boards, maintain information
technology infrastructure, develop new electronic applications, and meet the continuous query
requirements under the National Practitioner Data Bank.
    The OLS assumes that to the extent that State costs increase in order to develop and implement
a process to improve the efficiency of reviewing NJ FamilyCare provider applications, the
Division of Consumer Affairs would increase the licensure fee charged to individuals seeking
licensure to practice medicine in the State. In FY 2024, individuals applying for a medical license
pay a $325 nonrefundable application fee to the board; at the time of licensure, applicants also pay
a one-time endorsement fee of $225, plus an annual registration fee of $290.
    The OLS assumes, further, that the Department of Human Services will realize additional,
indeterminate costs to review provider applications upon receipt, and, within ten days of receipt of
an applicant’s license number, notify the applicant of any additional information or documentation
required to enroll as an approved NJ FamilyCare physician. Any additional costs borne by the
                                          FE to A4620 [2R]
                                                 3
Department of Human Services would be in the form of increased contract payments to Gainwell
Technologies, the NJ FamilyCare Contracted Systems Administrator, which is also responsible for
NJ FamilyCare provider enrollment. Because State Medicaid administrative costs are eligible for
federal Medicaid reimbursements, the State would be responsible for 50 percent of any increased
NJ FamilyCare administrative costs, pursuant to the bill.
  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.).
Statutes affected: 
Introduced: 26:2S-7