Signed by Governor Phil Murphy

Vote Smart's Synopsis:

Vote to concur with the governor's conditional veto and pass a bill that specifies that the County Option Hospital Fee Pilot Program expires five years after each participating county has collected the fee, and that participating counties in the program are not liable for the fee imposed on hospitals.

Highlights:

• Establishes "The County Option Hospital Fee Pilot Program" in the Department of Human Services. The program will commence on the 180th day after the effective date and will expire five years after each participating county has collected a local healthcare-related fee (Sec. 3.a).

• Specifies the purpose of the pilot program is the following (Sec. 3.b):

• To increase financial resources through the Medicaid program to support local hospitals and to ensure that they continue to provide necessary services to low-income citizens; and

• To provide participating counties with new fiscal resources.

• Requires the commissioner to authorize no more than seven participating counties in the State for participation in the program. Each participating county shall be authorized to impose a local healthcare-related fee on hospitals within its borders (Sec. 3.c).

• Requires the commissioner to further review the proposed fee and expenditure report to determine whether it complies with relevant rules and regulations. Each participating county will consult with affected hospitals within its jurisdiction to prepare the proposed fee and expenditure report before the report is submitted to the commissioner (Sec. 3.d).

• Authorizes the Board of Chosen Freeholders of a participating county, following the approval of the participating county's proposed fee and expenditure plan by the commissioner, to adopt an ordinance providing for the imposition of a fee on hospitals located within its borders and for appropriate administrative provisions, including, but not limited to, provisions for the collection of interest and penalties (Sec. 3.e).

• Specifies any subsequent alterations to the fee are subject to the approval of the commissioner before implementation. Upon approval, the commissioner shall apply for such State plan amendments or waivers as may be necessary to implement the changes and to secure federal financial participation for State Medicaid expenditures under the federal Medicaid program (Sec. 3.f).

• Prohibits a participating county from being liable for any amount of a local healthcare-related fee imposed on a hospital according to this act that the hospital fails to pay or does not pay on time to the assessing county (Sec. 3.g).

Full Bill Text

Vetoed by Governor Phil Murphy