Bill Text: NJ S3490 | 2018-2019 | Regular Session | Introduced
Bill Title: Requires initial Medicaid and NJ FamilyCare eligibility determinations to be made not later than 21 days following application submission; provides that NJ FamilyCare coverage is terminated whenever required premium is not paid for three consecutive months.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-02-21 - Introduced in the Senate, Referred to Senate Health, Human Services and Senior Citizens Committee [S3490 Detail]
Download: New_Jersey-2018-S3490-Introduced.html
Sponsored by:
Senator JOSEPH P. CRYAN
District 20 (Union)
SYNOPSIS
Requires initial Medicaid and NJ FamilyCare eligibility determinations to be made not later than 21 days following application submission; provides that NJ FamilyCare coverage is terminated whenever required premium is not paid for three consecutive months.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the Medicaid and NJ FamilyCare programs and amending P.L.2005, c.156.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 5 of P.L.2005, c.156 (C.30:4J-12) is amended to read as follows:
5. a. The purpose of the program shall be to provide subsidized health insurance coverage, and other health care benefits as determined by the commissioner, to children under 19 years of age and their parents or caretakers and to adults without dependent children, within the limits of funds appropriated or otherwise made available for the program.
The program shall require families to pay copayments and make premium contributions, based upon a sliding income scale. The program shall include the provision of well-child and other preventive services, hospitalization, physician care, laboratory and x-ray services, prescription drugs, mental health services, and other services as determined by the commissioner.
b. The commissioner shall take such actions as are necessary to implement and operate the program in accordance with the State Children's Health Insurance Program established pursuant to 42 U.S.C. s.1397aa et seq.
c. The commissioner:
(1) shall, by regulation, establish standards for determining eligibility and other program requirements, including, but not limited to, restrictions on voluntary disenrollments from existing health insurance coverage;
(2) shall require that a parent or caretaker who is a qualified applicant purchase coverage, if available, through an employer-sponsored health insurance plan which is determined to be cost-effective and is approved by the commissioner, and shall provide assistance to the qualified applicant to purchase that coverage, except that the provisions of this paragraph shall not be construed to require an employer to provide health insurance coverage for any employee or employee's spouse or dependent child;
(3) may, by regulation, establish plans of coverage and benefits to be covered under the program, except that the provisions of this section shall not apply to coverage for medications used exclusively to treat AIDS or HIV infection; and
(4) shall establish, by regulation, other requirements for the program, including, but not limited to, premium payments and copayments, and may contract with one or more appropriate entities, including managed care organizations, to assist in administering the program. The period for which eligibility for the program is determined shall be the maximum period permitted under federal law.
d. The commissioner shall establish procedures for determining eligibility, which shall include, at a minimum, the following enrollment simplification practices:
(1) A streamlined application form as established pursuant to subsection k. of this section;
(2) Require new applicants to submit one recent pay stub from the applicant's employer, or, if the applicant has more than one employer, one from each of the applicant's employers, to verify income. In the event the applicant cannot provide a recent pay stub, the applicant may submit another form of income verification as deemed appropriate by the commissioner. If an applicant does not submit income verification in a timely manner, before determining the applicant ineligible for the program, the commissioner shall seek to verify the applicant's income by reviewing available Department of the Treasury and Department of Labor and Workforce Development records concerning the applicant, and such other records as the commissioner determines appropriate.
The commissioner shall establish retrospective auditing or income verification procedures, such as sample auditing and matching reported income with records of the Department of the Treasury and the Department of Labor and Workforce Development and such other records as the commissioner determines appropriate.
In matching reported income with confidential records of the Department of the Treasury, the commissioner shall require an applicant to provide written authorization for the Division of Taxation in the Department of the Treasury to release applicable tax information to the commissioner for the purposes of establishing income eligibility for the program. The authorization, which shall be included on the program application form, shall be developed by the commissioner, in consultation with the State Treasurer;
(3) Online enrollment and renewal, in addition to enrollment and renewal by mail. The online enrollment and renewal forms shall include electronic links to other State and federal health and social services programs;
(4) Continuous enrollment;
(5) Simplified renewal by sending an enrollee a preprinted renewal form and requiring the enrollee to sign and return the form, with any applicable changes in the information provided in the form, prior to the date the enrollee's annual eligibility expires. The commissioner shall establish such auditing or income verification procedures, as provided in paragraph (2) of this subsection; [and]
(6) Provision of program eligibility-identification cards that are issued no more frequently than once a year; and
(7) An eligibility determination timeliness standard that provides for a new applicant's determination of eligibility as soon as all factors of eligibility are met and verified, but not later than 21 days from the date of the initial application submission. When the determination of eligibility is made later than 21 days from the date of the initial application submission, the eligibility determination agency responsible for the intake and processing of the application shall provide the applicant written notification, immediately upon the expiration of the 21-day processing period, setting forth the specific reasons for the delay.
The commissioner shall report to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), on the application processing performance of eligibility determination agencies pursuant to this paragraph and subsection g. of section 9 of P.L.2005, c.156 (C.30:4D-3b), and make any recommendations the commissioner deems appropriate, no later than one year following the enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), and annually thereafter.
e. The commissioner shall take, or cause to be taken, any action necessary to secure for the State the maximum amount of federal financial participation available with respect to the program, subject to the constraints of fiscal responsibility and within the limits of available funding in any fiscal year. In this regard, notwithstanding the definition of "qualified applicant," the commissioner may enroll in the program such children or their parents or caretakers who may otherwise be eligible for the Medicaid program in order to maximize use of federal funds that may be available pursuant to 42 U.S.C. s.1397aa et seq.
f. Subject to federal approval, a child shall be determined ineligible for the program if the child was voluntarily disenrolled from employer-sponsored group insurance coverage within six months prior to application to the program.
g. The commissioner shall provide, by regulation, for presumptive eligibility for the program in accordance with the following provisions:
(1) A child who presents himself for treatment at a general hospital, federally qualified or community health center, local health department that provides primary care, or other State licensed community-based primary care provider shall be deemed presumptively eligible for the program if a preliminary determination by hospital, health center, local health department or licensed health care provider staff indicates that the child meets program eligibility standards and is a member of a household with an income that does not exceed 350% of the poverty level;
(2) The provisions of paragraph (1) of this subsection shall also apply to a child who is deemed presumptively eligible for Medicaid coverage pursuant to P.L.1968, c.413 (C.30:4D-1 et seq.);
(3) The parent or caretaker of a child deemed presumptively eligible pursuant to this subsection shall be required to submit a completed application for the program no later than the end of the month following the month in which presumptive eligibility is determined;
(4) A child shall be eligible to receive all services covered by the program during the period in which the child is presumptively eligible; and
(5) The commissioner may, by regulation, establish a limit on the number of times a child may be deemed presumptively eligible for NJ FamilyCare.
h. The commissioner, in consultation with the Commissioner of Education, shall administer an ongoing enrollment initiative to provide outreach to children throughout the State who may be eligible for the program.
(1) With respect to school-age children, the commissioner, in consultation with the Commissioner of Education and the Secretary of Agriculture, shall develop a form that provides information about the NJ FamilyCare and Medicaid programs and provides an opportunity for the parent or guardian who signs the school lunch application form to give consent for information to be shared with the Department of Human Services for the purpose of determining eligibility for the programs. The form shall be attached to, included with, or incorporated into, the school lunch application form.
The commissioner, in consultation with the Commissioner of Education, shall establish procedures for schools to transmit information attached to, included with, or provided on the school lunch application form regarding the NJ FamilyCare and Medicaid programs to the Department of Human Services, in order to enable the department to determine eligibility for the programs.
(2) The commissioner or the Commissioner of Education, as applicable, shall:
(a) make available to each elementary and secondary school, licensed child care center, registered family day care home, unified child care agency, local health department that provides primary care, and community-based primary care provider, informational materials about the program, including instructions for applying online or by mail, as well as copies of the program application form.
The entity shall make the informational and application materials available, upon request, to persons interested in the program; and
(b) request each entity to distribute a notice at least annually, as developed by the commissioner, to households of children attending or receiving its services or care, informing them about the program and the availability of informational and application materials. In the case of elementary and secondary schools, the information attached to, included with, or incorporated into, the school lunch application form for school-age children pursuant to this subparagraph shall be deemed to meet the requirements of this paragraph.
i. Subject to federal approval, the commissioner shall, by regulation, establish that in determining income eligibility for a child, any gross family income above 200% of the poverty level, up to a maximum of 350% of the poverty level, shall be disregarded.
j. The commissioner shall establish a NJ FamilyCare coverage buy-in program through which a parent or caretaker whose family income exceeds 350% of the poverty level may purchase coverage under NJ FamilyCare for a child under the age of 19, who is uninsured and was not voluntarily disenrolled from employer-sponsored group insurance coverage within six months prior to application to the program. The program shall be known as NJ FamilyCare Advantage.
The commissioner shall establish the premium and cost sharing amounts required to purchase coverage, except that the premium shall not exceed the amount the program pays per month to a managed care organization under NJ FamilyCare for a child of comparable age whose family income is between 200% and 350% of the poverty level, plus a reasonable processing fee.
k. The commissioner, in consultation with the Rutgers Center for State Health Policy, shall develop a streamlined application form for the NJ FamilyCare and Medicaid programs.
l. Subject to federal approval, the Commissioner of Human Services shall establish a hardship waiver for part or all of the premium for an eligible child under the NJ FamilyCare program. A parent or caretaker may apply to the commissioner for a hardship waiver in a manner and form established by the commissioner. If the parent or caretaker can demonstrate to the satisfaction of the commissioner, pursuant to regulations adopted by the commissioner, that payment of all or part of the premium for the parent or caretaker's child presents a hardship, the commissioner shall grant the waiver for a prescribed period of time.
m. A failure to pay required monthly plan premiums for three consecutive months shall result in the termination of NJ FamilyCare coverage, effective as of the month following the third coverage month for which a required premium has not been received.
(cf: P.L.2008, c.53, s.2)
2. Section 9 of P.L.2005, c.156 (C. 30:4D-3b) is amended to read as follows:
9. No later than January 1, 2006, the Commissioner of Human Services shall, at a minimum, establish the following enrollment simplification practices for dependent children and their parents or specified caretaker relatives who are applicants for or recipients of the Medicaid program:
a. A streamlined application form as established pursuant to subsection k. of section 5 of P.L.2005, c.156 (C.30:4J-12);
b. Require new applicants to submit one recent pay stub from the applicant's employer, or, if the applicant has more than one employer, one from each of the applicant's employers, to verify income. In the event the applicant cannot provide a recent pay stub, the applicant may submit another form of income verification as deemed appropriate by the commissioner. If an applicant does not submit income verification in a timely manner, before determining the applicant ineligible for the program, the commissioner shall seek to verify the applicant's income by reviewing available Department of the Treasury and Department of Labor and Workforce Development records concerning the applicant and such other records as the commissioner determines appropriate.
The commissioner shall establish retrospective auditing or income verification procedures, such as sample auditing and matching reported income with records of the Department of the Treasury and the Department of Labor and Workforce Development and such other records as the commissioner determines appropriate.
In matching reported income with confidential records of the Department of the Treasury, the commissioner shall require an applicant to provide written authorization for the Division of Taxation in the Department of the Treasury to release applicable tax information to the commissioner for the purposes of establishing income eligibility for the program. The authorization, which shall be included on the program application form, shall be developed by the commissioner, in consultation with the State Treasurer;
c. Online enrollment and renewal, in addition to enrollment and renewal by mail. The online enrollment and renewal forms shall include electronic links to other State and federal health and social services programs;
d. Continuous enrollment;
e. Simplified renewal by sending a recipient a preprinted renewal form and requiring the recipient to sign and return the form, with any applicable changes in the information provided in the form, prior to the date the recipient's annual eligibility expires. The commissioner shall establish such auditing or income verification procedures as provided in subsection b. of this section; [and]
f. Provision of program eligibility-identification cards that are issued no more frequently than once a year; and
g. An eligibility determination timeliness standard that provides for a new applicant's determination of eligibility as soon as all factors of eligibility are met and verified, but not later than 21 days from the date of the initial application submission. When the determination of eligibility is made later than 21 days from the date of the initial application submission, the eligibility determination agency responsible for the intake and processing of the application shall provide the applicant written notification, immediately upon the expiration of the 21-day processing period, setting forth the specific reasons for the delay.
The commissioner shall report to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), on the application processing performance of eligibility determination agencies pursuant to this subsection and paragraph (7) of subsection d. of section 5 of P.L.2005, c.156 (C.30:4J-12), and make any recommendations the commissioner deems appropriate, no later than one year following the enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), and annually thereafter.
(cf: P.L.2008, c.53, s.1)
3. This act shall take effect on the first day of the seventh month next following the date of enactment, but the commissioner may take such anticipatory action in advance thereof as shall be necessary for the implementation of this act.
STATEMENT
This bill requires the Commissioner of Human Services to establish an eligibility determination timeliness standard for determining initial eligibility of families and children under the Medicaid and NJ FamilyCare programs. This bill also extends the period of time in which a beneficiary may fail to pay a premium required for NJ FamilyCare coverage before coverage is terminated.
Specifically, this bill requires the eligibility determination timeliness standard to provide for a new applicant's determination of eligibility as soon as all factors of eligibility are met and verified, but not later than 21 days from the date of the initial application submission. When the determination of eligibility is made later than 21 days from the date of the initial application submission, the eligibility determination agency responsible for the intake and processing of the application must provide the applicant written notification, immediately upon the expiration of the 21-day processing period, setting forth the specific reasons for the delay.
The commissioner is further required to report to the Governor and the Legislature on the application processing performance of eligibility determination agencies pursuant to this bill and make any recommendations the commissioner deems appropriate no later than one year following the bill's enactment, and annually thereafter.
This bill also provides that a failure to pay a premium required for NJ FamilyCare coverage for three consecutive months will result in the termination of coverage. By current regulation, N.J.A.C. 10:49-9.2 and 10:79-6.7, coverage is terminated the month after a monthly plan premium payment is missed.
The current law, as modified by federal regulation, provides that an individual may be "locked out" or ineligible to apply for coverage if that person was "voluntarily disenrolled" from coverage within three months of their application to the program. This bill, by providing that coverage be terminated after three consecutive missed premium payments, instead of after one missed premium payment, will reduce the number of individuals who lose coverage, and accordingly, prevent individuals from being "locked-out" of or ineligible to apply for reinstatement of coverage due to a single missed premium payment.
