This bill proposes a supplemental appropriation of $25 million to the New Jersey Department of Health (DOH) to support mental health and addiction service providers transitioning to a fee-for-service reimbursement system. The funds will be allocated as grants-in-aid specifically for behavioral health rate increases, aimed at licensed providers who previously held cost-based reimbursement contracts with the state. The supplemental reimbursements will cover the difference between the providers' billable revenues under the new system and their most recent annual cost-based reimbursement contract, provided they have made a good faith effort to bill Medicaid for eligible services.

The appropriated funds will come from unspent allocations for mental health and substance use treatment programs within the DOH and the Department of Human Services, with additional funds sourced from the General Fund as needed, pending approval from the Director of the Division of Budget and Accounting. The bill aims to create a financial safety net for providers facing potential financial instability due to the transition, ensuring that they can continue to deliver essential services to their clients.