OLS: Possible $207M shortfall due to unrealized Medicaid waiver savings

TRENTON – The state could face a $207 million hole, because much of the savings anticipated from the comprehensive Medicaid Waiver application may not be realized, prompting the Health and Human Services departments to seek more state funds, according to the Office of Legislative Services.

OLS said today before the Assembly Budget Committee that the Human Services Department said that various balances within its accounts will offset the federal funds that had been assumed in the waiver. 

It added that “the (Christie) Administration has indicated that supplemental appropriations of $207 million of the (DHSS and DHS) will be requested, due to unrealized savings.”

The application for the Comprehensive Medicaid waiver, which essentially gives states the ability to craft their own Medicaid programs and free them from certain mandates, must be approved by June 30.