Official Site of The State of New Jersey

Notice: Nursing Home Provider Assessment: Per Diem Assessment Rate Increased to $14.67

P.L. 2003, c. 105, the Nursing Home Quality of Care Improvement Fund Act, (the Act) established an assessment on nursing homes to increase Medicaid reimbursement rates and provide additional funds for improving the quality of services delivered to New Jersey nursing home residents.

Effective July 1, 2019, the per diem assessment increased from the current rate of $11.92 to $14.67. This adjustment is necessary to achieve 6% of the aggregate amount of revenues received by nursing homes as outlined in the Act (N.J.S.A. 26:2H-92, et seq.).

The recently-enacted fiscal year 2020 Appropriation Act which outlines these payments, includes a new minimum per diem payment floor, quality incentive add-ons for nursing home facilities that meet or exceed national benchmarks for selected quality measures, and an increase in the provider assessment rate add-on for all nursing home facilities subject to the assessment.

Revenues collected as a result of the change will be reinvested into Medicaid payment rates to generate additional federal matching funds and deliver a net increase in resources to the industry.

The first returns reflecting the revised per diem assessment rate are due on October 21, 2019.