S3867

An Act concerning health equity, access, and leadership; amending and supplementing P.L.1992, c.160; and making an appropriation.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 8 of P.L.1992, c.160 (C.26:2H-18.58) is amended to read as follows:

8. There is established the Health Care Subsidy Fund in the Department of Health.

a. The fund shall be comprised of revenues from employee and employer contributions made pursuant to section 29 of P.L.1992, c.160 (C.43:21-7b), revenues from the hospital assessment made pursuant to section 12 of P.L.1992, c.160 (C.26:2H-18.62), revenues pursuant to section 11 of P.L.1996, c.28 (C.26:2H-18.58c), revenues from interest and penalties collected pursuant to [this act] P.L.1992, c.160 (C.26:2H-18.51 et seq.) and revenues from other sources as the Legislature shall determine. Interest earned on the monies in the fund shall be credited to the fund. The fund shall be a nonlapsing fund dedicated for use by the State to: (1) distribute charity care and other uncompensated care disproportionate share payments to hospitals, and other eligible providers pursuant to section 8 of P.L.1996, c.28 (C.26:2H-18.59f), provide subsidies for the Health Access New Jersey program established pursuant to section 15 of P.L.1992, c.160 (C.26:2H-18.65), and provide funding for children's health care coverage in the NJ FamilyCare Program pursuant to P.L.2005, c.156 (C.30:4J-8 et al.); (2) provide funding for federally qualified health centers pursuant to section 12 of P.L.1992, c.160 (C.26:2H-18.62); [and] (3) provide for the payment in State fiscal year 2002 of appropriate Medicaid expenses, subject to the approval of the Director of the Division of Budget and Accounting ; and (4) provide for allocations to the Health Equity Access and Leadership Fund, pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

b. The fund shall be administered by a person appointed by the commissioner.

The administrator of the fund is responsible for overseeing and coordinating the collection and reimbursement of fund monies. The administrator is responsible for promptly informing the commissioner if monies are not or are not reasonably expected to be collected or disbursed.

c. The commissioner shall adopt rules and regulations to ensure the integrity of the fund, pursuant to the "Administrative Procedure

Act," P.L.1968, c.410 (C.52:14B-1 et seq.).

d. The administrator shall establish separate accounts for the charity care component of the disproportionate share hospital subsidy, other uncompensated care component of the disproportionate share hospital subsidy, federally qualified health centers funding, Health Equity Access and Leadership Fund component, as establish pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), and the payments for subsidies for insurance premiums to provide care in disproportionate share hospitals, known as the Health Access New Jersey subsidy account, respectively.

e. In the event that the charity care component of the disproportionate share hospital subsidy account has a surplus in a given year after payments are distributed pursuant to the methodology established in section 13 of P.L.1995, c.133 (C.26:2H-18.59b) and section 7 of P.L.1996, c.28 (C.26:2H-18.59e) and within the limitations provided in subsection e. of section 9 of P.L.1992, c.160 (C.26:2H-18.59), the surplus monies in calendar years 2002, 2003 and 2004 shall lapse to the unemployment compensation fund established pursuant to R.S.43:21-9, and each year thereafter shall lapse to the charity care component of the disproportionate share hospital subsidy account for distribution in subsequent years.

(cf: P.L.2012, c.17, s.223)

2. (New section) a. The administrator of the Health Care Subsidy Fund, as appointed pursuant to subsection b. of section 8 of P.L.1992, c. 160 (C.26:2H-18.58), shall establish a separate non-lapsing dedicated account known as the Health Equity Access and Leadership, or HEAL, Fund within the Health Care Subsidy Fund.

b. The HEAL Fund shall be the repository for:

(1) monies allocated by the Commissioner of Health from the Health Care Subsidy Fund, commencing upon July 1 next following the enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), and annually thereafter, which amount shall be equal to at least 0.1 percent of the revenue projected to be deposited into the Health Care Subsidy Fund in the applicable State fiscal year;

(2) funds appropriated pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill); and

(3) any other funds approved by the Commissioner of Health including from public or private sources such as gifts, grants, or donations.

c. Moneys deposited in the HEAL Fund, and any interest earned thereon, shall be distributed by the Commissioner of Health via a competitive grant process to health care community-based organizations and service providers that:

(1) provide essential health care services to:

(a) underserved or underinsured patient populations for which access has been reduced due to a substantial loss of State or federal funds; and

(b) all patients regardless of the patient’s race, creed, color, national origin, nationality, immigration status, ancestry, age, marital status, civil union status, domestic partnership status, affectional or sexual orientation, genetic information, pregnancy, sex, gender identity or expression, disability, atypical hereditary cellular or blood trait, or liability for service in the Armed Forces of the United States; and

(2) have not received any revenue from a federal funding source in the 12 months prior to the application submission date.

d. The Commissioner of Health shall:

(1) establish the process and criteria by which organizations and providers shall be determined eligible for a grant from the HEAL Fund, which criteria, at a minimum, shall include the requirements enumerated in subsection c. of this section and well as the applicant’s need for funds to maintain existing services; and

(2) issue grant awards according to an assessment of the applicant’s eligibility according to the criteria established pursuant to paragraph (1) of this subsection and the availability of funds.

e. The Commissioner of Health shall submit an annual report to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature, no later than March 1 of each year following the first allocation into the HEAL Fund pursuant to paragraph (1) of subsection b. of this section, detailing:

(1) total receipts and sources of moneys deposited into the HEAL Fund;

(2) total expenditures from the HEAL Fund, disaggregated by grant amount, recipient, and purpose;

(3) geographic distribution of services, and demographic characteristics of service recipients, funded by grant awards;

(4) outcomes related to healthcare access, healthcare equity, and patient health under programs and services supported by grants awarded from the HEAL Fund; and

(5) recommendations for continued or expanded support of the HEAL Fund.

3. There is appropriated from the General Fund to the Department of Health $25,000,000 to be deposited into the Health Equity Access and Leadership Fund, established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

4. The Department of Health, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall adopt rules and regulations necessary to implement the provisions of this bill.

5. This act shall take effect immediately.

STATEMENT

This bill establishes the Health Equity Access and Leadership (HEAL) Fund, a separate non-lapsing dedicated account within the Health Care Subsidy Fund. The Health Care Subsidy Fund (HCSF) receives its revenues from several State taxes, among them the cigarette tax and the HMO Premiums Assessment. With this revenue, the HCSF supports various health care initiatives throughout the State, including NJ FamilyCare and Charity Care. Under the bill, the HCSF is expanded to include an allocation to support the HEAL Fund.

The Commissioner of Health (commissioner) is to use the HEAL Fund to distribute competitive grants to health care community-based organizations and service providers that provide essential health care services to: 1) underserved or underinsured patient populations for which access has been reduced due to a substantial loss of State or federal funds; and 2) all patients regardless of the patient’s race, creed, immigration status, age, relationship status, and various other characteristics. Additionally, the grants are to be distributed to applicants who have not received any revenue from a federal funding source in the 12 months prior to the application submission date.

In addition to annual allocations from the HCSF, which are required to be equal to at least 0.1 percent of the revenue projected to be deposited into the HCSF in the applicable State fiscal year, the HEAL Fund is also the repository of a $25 million appropriation from the General Fund made under the bill and any other funds approved by the commissioner. For reference, in State fiscal year 2026, 0.1 percent of the projected revenue deposited into the HCSF is approximately $2 million.

The distribution of grant awards is to be according to the availability of funds, and the process and criteria established by the commissioner. Eligibility criteria, at a minimum, is to include the requirements outlined in the bill as well as the applicant’s need for funds to maintain existing services.

The commissioner is also required to submit an annual report to the Governor and to the Legislature detailing HEAL Fund activity and grant awards; as well as recommendations for continued or expanded support of the HEAL Fund.