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Bill Establishing Minimum Medicaid Reimbursement Rate Clears Committee

TRENTON – A Senate committee today approved legislation that would establish a minimum Medicaid reimbursement rate for providers of adult medical day care services.

Specifically, the FY 2021 budget language provided that the minimum fee-for-service and managed care per diem reimbursement rates for adult medical day care providers would be $82, a $3.50 increase over the FY2020 rate. This bill, sponsored by Senator Vin Gopal and approved by the Senate Budget and Appropriations Committee, would codify the budget language.

“Adult Day Health Services is a vital part of our state’s greater health care network, providing a safe environment for frail elderly during the day when their caregivers are at work. The providers are among the unsung heroes of our state’s broader health care network, and we must endeavor to make sure they are reasonably and responsibly reimbursed for the invaluable service they provide. Codifying this language is an important step towards this goal,” said Senator Gopal (D-Monmouth).

As defined under the bill, “provider of adult medical day care services” would mean an adult day health services facility licensed by the Department of Health, which provides preventive, diagnostic, therapeutic, and rehabilitative services under medical and nursing supervision to meet the needs of functionally impaired adult participants for a period of time that does not exceed 12 hours during any calendar day.

The bill, S-2561, was passed out of committee by a vote of 12-0.