Signed by Governor Phil Murphy

Vote Smart's Synopsis:

Vote to pass a bill that establishes a new minimum wage requirement for certain long-term care facility staff.

Highlights:

• Establishes a minimum wage for long-term care facility direct care staff members in an amount that is $3 higher than the prevailing minimum wage (Sec. 2).

• Requires the Commissioner of Human Services to submit recommendations to the Legislature for approval of any reimbursement rate increases that may be needed to comply with minimum wage requirements (Sec. 3)

• Requires the commissioner to conduct a review of the Department of Human Services Medicaid value-based payment strategy, including the Quality Incentive Payment Program, and determine whether incentives are an effective means of driving improvements in quality of care, and resident and staff safety in nursing homes no later than 90 days after the effective date of this act (Sec. 3).

• Requires the commissioner to establish a direct care ratio reporting and rebate requirement no later than July 1, 2021 that requires nursing homes to do the following (Sec. 3):

• Report their total revenues collected and the portion of revenues expended on direct care staff wages, other staff wages, taxes, administrative costs, investments and improvements to the facility’s equipment, profits, and any other factors the commissioner requires; and

• Expend at least 90 percent of the facility’s aggregate revenue in a fiscal year on the direct care of residents.

• Requires the commissioner to initiate a study of the costs and payments associated with nursing home care no later than 60 days after the effective date of this act, and submit a final report of the findings and recommendations of the study no later than January 1, 2022 (Sec. 4).

• Requires the commissioner to apply for State plan amendments and waivers as may be necessary to implement the provisions of this act and to secure federal financial participation for State Medicaid expenditures under the federal Medicaid program (Sec. 5).  

Full Bill Text