Medicaid demonstration project bill advances

TRENTON – The Assembly Budget Committee approved A3636, which establishes a three-year Medicaid Accountable Care Organization Demonstration Project. Sponsor Assemblyman Lou Greenwald (D-6) said it is a “private sector solution to a decades-old government problem.”

Run through the Department of Human Services (DHS), the demonstration project allows nonprofit corporations – organized and operated for the primary purpose of “improving health outcomes and the quality and efficiency of care” for Medicaid fee-for-service recipients from towns were no fewer than 5,000 Medicaid recipients reside – to participate in a gainsharing program. The project also allows for voluntary participation by Medicaid managed care organizations.

Once certified by the state, these Medicaid Accountable Care Organizations (ACOs) are eligible to receive and distribute gainsharing or cost-savings payments in accordance with a gainsharing plan approved by DHS, which promote improvements in health outcomes and quality of care, as measured by objective benchmarks as well as patient experience of care; expanded access to primary and behavioral health care services; and the reduction of unnecessary and inefficient costs associated with care rendered to Medicaid recipients residing in the designated area of the ACO.

Greenwald said the bill has “broad support across the interest groups,” some of which testified in favor of the bill

N.J. Chamber of Commerce V.P. of Government Affairs Michael Egenton said, “It’s been a long time coming…This is innovative. This is landmark legislation. We think it will work well.”

Greenwald said, “This is the future of health care.”

The measure passed unanimously before the committee.


Medicaid demonstration project bill advances