Bill > A894

Introduced Session

This bill establishes an annual cost of living adjustment, based on Consumer Price Index, to the base per diem reimbursement rates paid to assisted living facilities, comprehensive personal care homes, and assisted living programs for each Medicaid beneficiary under their care. The cost of living adjustment is to be implemented on July 1 of each year and to be based on the Consumer Price Index data published by the United States Department of Labor in the previous January regarding any increase in the all items index over the immediately preceding 12-month period. The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. For reference, the base FY 2024 per diem rates for assisted living facilities, comprehensive personal care homes, and assisted living programs are $89.50, $79.50, and $69.50, respectively. Moreover, Consumer price index data released in January of 2024 showed that prices for a range of goods and services rose by 3.4 percent over the previous 12-month period. Applying this increase to the existing per diem rates results in those rates being increased by the following: $3.04, $2.70, and $2.36, respectively. The bill requires the Commissioner of Human Services to apply for such State plan amendments or waivers as may be necessary to implement the provisions of the bill and to secure federal financial participation for State Medicaid expenditures under the federal Medicaid program. The bill also appropriates from the General Fund to the Division of Medical Assistance and Health Services such sums as are necessary to effectuate the provisions of the bill.

AI Summary

Committee Categories

John Azzariti (R)*, 

Introduced, Referred to Assembly Aging and Human Services Committee (on 01/13/2026)

Official Document