Gov. Mikie Sherrill signed legislation Wednesday easing financial reporting requirements for smaller home health care providers while preserving independent audits for firms receiving larger amounts of Medicaid funding.
The new law, S-3463, revises reporting and audit requirements for health care service firms that provide companion, personal care and other in-home services to seniors and people with disabilities.
Under the law, the annual Medicaid Personal Care Assistance reimbursement threshold that triggers an independent audit every three years increases from $250,000 to $500,000. Providers receiving less than that amount will instead face streamlined reporting requirements.
The measure received unanimous approval in the Senate and passed the Assembly with just one member not voting.
“Families depend on home care providers to help their loved ones live safely and comfortably, and those providers should be able to spend their time caring for patients,” said Senate Minority Leader Anthony Bucco, one of the bill’s sponsors.
Bucco said the law will reduce administrative burdens on smaller providers while preserving safeguards for consumers.
“It will also give families the peace of mind they need and allow small health care providers to focus on doing what they do best,” he said.
Health care service firms that receive less than $500,000 in Medicaid Personal Care Assistance reimbursements and generate less than $10 million in annual gross income will no longer be required to submit an independent third-party financial review.
Instead, those providers must file a report detailing their insurance coverage, litigation history, regulatory actions during the previous three years, use of independent contractors and significant financial transactions or liabilities.
Audits required under the law must be submitted to the Division of Consumer Affairs by Sept. 30 and may be conducted by certified public accountants licensed in New Jersey or another U.S. jurisdiction.
The division may require additional documentation, order corrective action or mandate an independent audit the following year if it identifies concerns about a firm’s financial condition.
The law also repeals a requirement that the Division of Consumer Affairs establish standards for independent third-party financial reviews, replacing that process with the new reporting system.
The bill was also sponsored by Sen. Gordon Johnson (D-Englewood) and Assemblymen Roy Freiman (D-Hillsborough), Avi Schnall (D-Lakewood) and Christopher DePhillips (R-Wyckoff).
The Assembly approved the measure, 79-0, on June 30, with Assemblyman Alex Sauickie (R-Jackson) not voting. The Senate passed it unanimously.