This bill mandates the establishment of an incentive-based value payment system by the Division of Medical Assistance and Health Services within the Department of Human Services for licensed home health agencies and registered health care service firms serving NJ FamilyCare recipients enrolled in a Fully Integrated Dual Eligible Special Needs Plan. Participation in this system is compulsory, and it aims to reward agencies and firms for achieving improved performance outcomes. The division is tasked with creating a framework to measure these outcomes, which includes various health metrics such as hospitalization rates, patient mobility, and medication management. Additionally, the division will set performance targets, establish baseline data for comparisons, and determine the incentive payment amounts, which will be publicly accessible online.

The bill also outlines the responsibilities of participating agencies and firms, including designating a care coordinator for each patient and developing protocols for post-discharge follow-ups and medication reconciliation. Managed care organizations will administer the incentive payments, and both the Department of Human Services and these organizations must provide necessary data for evaluating the system. An annual audit by an independent third party will be required starting two years after the bill's effective date, and the division must report to the Legislature on the system's status and effectiveness. The bill allocates up to $10 million for the payment system, with specific distribution guidelines for high-performing agencies. Furthermore, it establishes an advisory board to assist in developing regulations for the system, which must be adopted within one year of the bill's enactment.