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Bill > A3577


NJ A3577

NJ A3577
Requires Director of Division of Developmental Disabilities to align rates for self-directed employees with maximum service provider rates.


summary

Introduced
03/10/2022
In Committee
03/10/2022
Crossed Over
Passed
Dead
01/08/2024

Introduced Session

2022-2023 Regular Session

Bill Summary

This bill requires the Director of the Division of Developmental Disabilities (division) in the Department of Human Services to ensure that there is parity between service provider and self-directed employee rates, regarding approved services funded by the division and provided to eligible individuals. Under the bill: "self-directed employee" means a person who is recruited and offered employment directly by an individual who is eligible to receive services funded by the division, or the individual's authorized representative, to perform approved services, for which the self-directed employee is qualified; and "service provider" means an entity or individual who enters into a contract with the division to provide approved services to individuals who are eligible to receive services funded by the division. The director's efforts are to include, at a minimum, setting the rates contracted between the division and a service provider as the maximum self-directed employee rates, provided that the rates are for the same service, duration of time, and level of care. Currently, under the self-direction service model, the individual, or the individual's authorized representative, offering employment to the self-directed employee determines the employee's hourly rate, within a "reasonable and customary" framework. The individual's service budget must be able to support this rate. The comparable service provider rates are specific by amount and are generally much higher. For example, the hourly base rate for high acuity community based supports provided by a service provider is approximately $51.00, while the hourly rate for the same service provided by a self-directed employee is "reasonable and customary." The current threshold for "reasonable and customary" is between approximately $20 and $25 per hour. Under this bill, the maximum hourly rate for a self-directed employee providing community based supports would be equal to the hourly service provider rate of approximately $51.00, provided that the level of care is identical for both services.

AI Summary

This bill requires the Director of the Division of Developmental Disabilities to ensure parity between service provider and self-directed employee rates for approved services funded by the division. It defines "self-directed employee" as a person hired directly by an eligible individual or their representative to provide approved services, and "service provider" as an entity or individual who contracts with the division to provide approved services. The bill mandates that the director set the maximum self-directed employee rates at the same level as the contracted service provider rates for the same service, duration, and level of care. This is intended to address the current disparity where service provider rates are generally much higher than the "reasonable and customary" rates paid to self-directed employees. The bill also requires the Commissioner of Human Services to seek any necessary state plan amendments or waivers and adopt implementing regulations.

Committee Categories

Health and Social Services

Sponsors (6)

Last Action

Introduced, Referred to Assembly Human Services Committee (on 03/10/2022)

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