SENATE HEALTH, HUMAN SERVICES AND SENIOR CITIZENS COMMITTEE

STATEMENT TO

SENATE, No. 3491

with committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 3, 2019

      The Senate Health, Human Services and Senior Citizens Committee reports favorably and with committee amendments Senate Bill No. 3491.

      As amended by the committee, this bill raises, over time, the hourly Medicaid reimbursement rate for personal care services to $25.  Providers who receive reimbursement for personal care services utilize those funds to cover direct and indirect administrative costs, as well as wages for workers who directly provide personal care services.  Personal care services are provided in the home rather than a long term care facility and include assistance with activities of daily living and household duties essential to the patient’s health and comfort.

      Currently, pursuant to section 1 of P.L.2017, c.239 (C.30:4D-7n), the reimbursement rate for personal care services within the Medicaid program, whether the services are provided in the Medicaid fee-for-service delivery system or through a managed care delivery system, is required to be no less than the established State Medicaid fee-for-service rate.  However, pursuant to the FY 2019 Appropriations Act, the hourly reimbursement rate for fee-for-service personal care services is $19, while the hourly reimbursement rate for personal care services provided through a managed care delivery system is required to be no less than $16.

      As amended by the committee, the bill eliminates a requirement that providers make assurances to the Division of Medical Assistance and Health Services in the Department of Human Services that increased funds realized under P.L.2017, c.239 (C.30:4D-7n et seq.) be used exclusively for salary increases for workers who directly provide personal care services.

COMMITTEE AMENDMENTS:

      The committee amendments amend section 2 of P.L.2017, c.239 (C.30:4D-7o), to remove a requirement that providers make assurances that funds realized under P.L.2017, c.239 (C.30:4D-7n et seq.), which revised the hourly reimbursement rate for personal care services, be used exclusively for salary increases for workers who directly provide personal care services.

      The committee amendments revise the effective date to provide that, instead of July 1, 2019, the bill will take effect immediately upon enactment.

      The committee amendments make various technical corrections to the findings and declarations section of the bill.