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Bill > A1534


NJ A1534

NJ A1534
Requires Director of Division of Developmental Disabilities to align rates for self-directed employees with maximum service provider rates.


summary

Introduced
01/09/2024
In Committee
01/09/2024
Crossed Over
Passed
Dead
01/12/2026

Introduced Session

2024-2025 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 (division) in the Department of Human Services to ensure parity between service provider and self-directed employee rates for approved services funded by the division and provided to eligible individuals. The key provisions include: setting the rates contracted between the division and a service provider as the maximum self-directed employee rates, provided the rates are for the same service, duration, and level of care; defining "self-directed employee" as a person directly recruited and employed by an eligible individual or their authorized representative to perform approved services; and defining "service provider" as an entity or individual who contracts with the division to provide approved services. The Commissioner of Human Services is also required to apply for any necessary state plan amendments or waivers to implement the act and secure federal Medicaid funding, and to adopt regulations to effectuate the purposes of the act.

Committee Categories

Health and Social Services

Sponsors (3)

Last Action

Introduced, Referred to Assembly Aging and Human Services Committee (on 01/09/2024)

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