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Bill > A4327
NJ A4327
NJ A4327Revises procedures for processing incomplete Medicaid applications; exempts asset transfers of up to $500 per month during look back period for determining eligibility for long-term care services.
summary
Introduced
02/19/2026
02/19/2026
In Committee
02/19/2026
02/19/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill permits individuals to transfer up to $500 in assets per calendar month during the 60 month look back period prior to receiving Medicaid coverage for long-term care services without being subject to a period of ineligibility. State and federal law requires a look-back period of 60 months from the date of an individual's application for Medicaid long-term care benefits to determine whether the individual has transferred financial resources to other individuals. (The bill also revises the State statute to conform with federal law extending the 60 month look-back period to all asset transfers.) Unauthorized resources transfers may result in a penalty period during which the individual may not receive Medicaid coverage of long-term care services. Federal law permits states to exclude certain transfers made for less than fair consideration, which are called "de minimis gifts," on the assumption that gifts or transfers under a certain amount of money would not be presumed to be made in contemplation of future Medicaid eligibility. New Jersey does not currently have a clear standard regarding such transfers, effectively leaving decisions about whether certain gifts will result in a penalty to the county welfare agencies. The lack of a clear standard also results in applicants resorting to the fair hearing process to resolve disputes, which may be costly for both the applicant and the State. The bill also provides that, if a county welfare agency deems a Medicaid application incomplete on the basis of incomplete or missing information, the agency will be required to provide the applicant with notice that the application was deemed incomplete, identify the information that is incomplete or missing, and inform the applicant that this information can be provided at any time and that the application will be reviewed when the incomplete or missing information is provided. The bill expressly requires the agency to review an application deemed incomplete upon receipt of all information identified as incomplete or missing.
AI Summary
This bill modifies how incomplete Medicaid applications are processed and adjusts rules for determining eligibility for long-term care services. Specifically, it allows individuals applying for Medicaid long-term care to transfer up to $500 per month without penalty during the 60-month look-back period, which is the timeframe state and federal law uses to review past financial transactions to assess eligibility. Previously, any asset transfer during this period could lead to a penalty, potentially delaying or denying coverage. The bill also requires county welfare agencies to notify applicants if their Medicaid application is incomplete, clearly state what information is missing, and inform them that the application will be reviewed once all required information is submitted, ensuring a clearer process for applicants.
Committee Categories
Health and Social Services
Sponsors (1)
Last Action
Introduced, Referred to Assembly Aging and Human Services Committee (on 02/19/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/A4327 |
| BillText | https://pub.njleg.gov/Bills/2026/A4500/4327_I1.HTM |
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