LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 2075
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JUNE 24, 2024
SUMMARY
Synopsis: Establishes minimum base NJ FamilyCare per diem reimbursement
rate of $1,100 for special care nursing facility with neurologically
impaired young adult unit.
Type of Impact: Annual State expenditure and revenue increases.
Agencies Affected: Department of Human Services.
Office of Legislative Services Estimate
Fiscal Impact Annual
State Expenditure Increase $3.2 million
State Revenue Increase $1.6 million
 The Office of Legislative Services (OLS) estimates that this bill will increase State
expenditures under the NJ FamilyCare program by approximately $3.2 million annually in
order to provide a base reimbursement rate of $1,100 per diem to special care nursing facilities
operating a neurologically impaired young adult unit.
 Subsequently, State revenue will increase annually by $1.6 million due to growth in federal
reimbursements under the NJ FamilyCare program, for an annual net State cost increase of
$1.6 million.
 This estimate assumes that Statewide there are 22 NJ FamilyCare special care nursing facility
beds that will qualify each year for this increased reimbursement rate. To the extent that the
number of beds changes, this estimate will increase or decrease accordingly.
BILL DESCRIPTION
This bill requires the Department of Human Services to reimburse a special care nursing
facility, issued a certificate of need by the Department of Health as of July 1, 2023 to operate a
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 A2075
2
neurologically impaired young adult unit, a base NJ FamilyCare per diem reimbursement rate that
is, at a minimum, the greater of the special care nursing facility’s FY 2022 base NJ FamilyCare
per diem reimbursement rate or $1,100 per diem. Under the bill, a “special care nursing facility”
means a nursing facility licensed pursuant to State law that is not a unit attached to, or on the same
campus as, a rehabilitation or acute care hospital and is not a distinct unit within a NJ FamilyCare-
certified conventional nursing facility, and which has been approved by the department to provide
care to NJ FamilyCare recipients who require specialized nursing facility services beyond the
scope of a conventional nursing facility. This bill applies to reimbursements beginning January 1,
2024 and only to those facilities in compliance with all applicable federal and State laws and
regulations concerning licensure, patient safety, and quality of care.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS estimates that this bill will increase State expenditures under the NJ FamilyCare
program by approximated $3.2 million annually in order to provide a base reimbursement rate of
$1,100 per diem to special care nursing facilities operating a neurologically impaired young adult
unit. Subsequently, State revenue will increase annually by $1.6 million due to growth in federal
reimbursements under the NJ FamilyCare program, for a net annual State cost increase of $1.6
million.
Currently, there is one special care nursing facility in the State that would be eligible for an
increased base rate of $1,100 per diem: Cheshire Home in Morris County. This estimate is based
on information provided by the Department of Human Services and by staff at the facility, as
detailed in the chart below:
Facility Name FY 2024 Increase to Number of Current Annual
Base Rate Comply with Beds at Number of NJ Cost
$1,100 Base Facility FamilyCare Under
Rate Under Beds Bill
the Bill
Cheshire $704.95 per $395.05 per 35 beds 22 $3.2
Home diem diem million
The OLS notes that to the extent the number of NJ FamilyCare beds at Cheshire Home changes,
or additional facilities establish neurologically impaired young adult units that qualify for the
$1,100 per diem reimbursement rate, this estimate will increase or decrease accordingly.
Moreover, this estimate assumes that Cheshire Home will maintain compliance with State and
federal laws and regulations, as is required under the bill to receive the increased reimbursement
rate.
 FE to A2075
3
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.).