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Nursing‑home, assisted‑living and adult‑day providers press for rate increases and corrections after FY2026 budget language confusion
Summary
John Endyke of the Health Care Association of New Jersey told the committee budget language that referenced 2024 nursing‑home rate calculations would cut reimbursement and should be corrected; DHS said the 2024 reference was a typo.
John Endyke of the Health Care Association of New Jersey said HCNJ was “shocked” to find language in the proposed FY2026 budget that referenced nursing‑home Medicaid rates in effect on June 30, 2024 for rate calculations and said that would reduce reimbursement by roughly $67.2 million; he added the Department of Human Services told providers the 2024 reference is a typo and that 2025 was intended. Endyke asked the committee to seek written clarification so providers would not operate “behind the eight ball.”
Speakers representing nursing homes, assisted living, adult day services and the wider long‑term care sector urged lawmakers to address persistently low Medicaid rates that they say do not cover the cost of care and to restore incentive eligibility. Megan Glaser of LeadingAge New Jersey noted the governor’s proposal allocates $7.2 million for nursing‑home staff wage increases and that DHS is implementing a cost‑report‑based rate setting system; however she said this still falls short of the sector’s needs and urged including a $5.5 million allocation to increase assisted living Medicaid base rates.
Dua (Doug) Felder of the New Jersey Adult Day Services Association told the panel that medical adult day care saves the state money and recommended raising the daily rate to $105; he said New Jersey’s median rate is far below the national average and centers are losing money. Several speakers stressed that modest state investments can draw federal matching dollars and preserve community services that keep beneficiaries out of higher‑cost institutional settings.
Witnesses also asked for changes to quality incentive eligibility, reinstatement or clarification of supplemental appropriations, and transparency in rate‑setting. No formal actions or votes occurred; providers asked the Legislature to correct budget language, add targeted rate increases for assisted‑living and adult day care, and preserve funding that would leverage federal matches.
