Sponsored by:
Assemblyman RONALD S. DANCER
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
Requires State to reimburse counties for costs paid for maintenance of county patients in State psychiatric hospitals who are eligible for federal Medicare or Medicaid coverage.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning maintenance of certain patients in State psychiatric facilities and amending P.L.1980, c.8.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1980, c.8 (C.30:4-68.1) is amended to read as follows:
1. In the case of Medicaid and Medicare eligible patients residing in the State psychiatric facilities, the maintenance costs to be paid by the counties shall be satisfied by federal Medicaid or Medicare Part A payments to the State. Should a State psychiatric facility lose its accreditation and subsequently not receive federal Medicaid and Medicare Part A payments, or for any reason fail to receive federal Medicaid or Medicare reimbursement for eligible patients, the counties shall not be liable for the maintenance of Medicaid or Medicare eligible county patients. If a county patient is determined to have been eligible for federal Medicare or Medicaid coverage during a period for which a county has paid for that patient's maintenance, the State shall reimburse the county the amount paid for that period.
(cf: P.L.1990, c.73, s.3)
2. This act shall take effect immediately.
STATEMENT
This bill requires the State to reimburse counties for costs paid for maintenance of county patients in State psychiatric hospitals who are eligible for federal Medicare or Medicaid coverage.
Under current law, counties are not liable for the costs of maintenance of county patient in State psychiatric facilities if those patients are eligible for federal Medicare or Medicaid coverage. However, an audit by the Office of the State Auditor of Ancora Psychiatric Hospital, issued September 3, 2014, identified nearly $2 million in potential revenue from the federal Medicare program that was not claimed by the hospital.
The sponsor's intent is to reduce property taxes. Because counties must rely on property tax revenue to pay for their portion of the costs of supporting patients in psychiatric hospitals, reducing the counties' burden may allow counties to reduce property taxes.