Sponsored by:
Assemblyman DANIEL R. BENSON
District 14 (Mercer and Middlesex)
Assemblywoman ANNETTE QUIJANO
District 20 (Union)
Assemblyman HERB CONAWAY, JR.
District 7 (Burlington and Camden)
SYNOPSIS
Provides for nursing home reimbursement adjustment for cost of energy improvements.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning nursing home reimbursement and supplementing Title 26 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. The Department of Health and Senior Services shall approve a request by a nursing home licensed pursuant to P.L.1971, c.136 (C.26:2H-1 et seq.) for an interim adjustment to its reimbursement rates, as prescribed by regulation of the Commissioner of Health and Senior Services, during a prospective rate period in order to cover the full amount of costs incurred by that facility to install equipment and devices that reduce its energy usage and produce a net savings in its energy costs.
2. The Commissioner of Health and Senior Services, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall adopt rules and regulations to effectuate the purposes of this act.
3. This act shall take effect on the first day of the seventh month next following the date of enactment and shall apply to costs incurred by a nursing home on or after the effective date of this act, but the Commissioner of Health and Senior Services may take such anticipatory administrative action in advance thereof as shall be necessary for the implementation of this act.
STATEMENT
This bill is designed to provide a financial incentive under the Department of Health and Senior Services (DHSS) reimbursement rate structure for nursing homes to invest in energy efficiency improvements.
Specifically, the bill directs DHSS to approve a request by a nursing home for an interim adjustment to its reimbursement rates, as prescribed by regulation of the Commissioner of DHSS, during a prospective rate period in order to cover the full amount of costs incurred by that facility to install equipment and devices that reduce its energy usage and produce a net savings in its energy costs.
The bill takes effect on the first day of the seventh month next following the date of enactment and applies to costs incurred by a nursing home on or after the effective date of the bill, but the Commissioner of DHSS is authorized to take anticipatory administrative action in advance as necessary for the implementation of the bill.
By encouraging nursing homes to pursue energy efficiency projects that will reduce their monthly energy costs, this bill will not only provide an incentive for these facilities to reduce their “carbon footprint,” but will also enable them to free up more money that can be allocated to resident care. In addition, “green” buildings have been shown to be healthier buildings for their occupants, which is an important consideration for nursing homes, where the residents spend the overwhelming majority of their time inside.