This bill proposes a supplemental appropriation of $25 million to the New Jersey Department of Health (DOH) to support certain mental health and addiction service providers as they transition to a fee-for-service reimbursement system. The funds will be allocated to licensed providers who previously held cost-based reimbursement contracts with the state and are now facing potential financial instability due to the transition. 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 all 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 amounts drawn from the General Fund as needed, subject to approval from the Director of the Division of Budget and Accounting. This financial support aims to create a safety net for providers during the transition, ensuring that they can continue to deliver essential services to their clients without interruption.