June 15, 2023
The Human Services Equity Coalition, led by Easterseals New Jersey and of which NJAMHAA is a member, was created this year to highlight problems faced by organizations paid by New Jersey's fee-for-service (FFS) model.
The coalition's support for A508/S2668, legislation that would establish a cost of living adjustment based on the Consumer Price Index (CPI) for programs providing mental health, substance use treatment, or services to persons with developmental disabilities, was recently highlighted in an article published on roi-nj.com.
Matt Binder, Advocacy Manager at Easterseals New Jersey, stated that for organizations that provide this care, about 80% of funding comes from government sources, and that recent funding increases come after more than a decade of stagnation, meaning that current rates are not enough. He was quoted saying, "But, rates for (our industry's services) have not kept pace with inflation . . . At the same time, where we've left COVID-19 is not where we entered it - in terms of inflation, as well as no longer having the money that the federal government was sending to states. What was really an already-overburdened system has become quite stressed."
Mary Abrams, NJAMHAA's Senior Health Policy Analyst, reported that another concern is the increased demand for services, while the industry is still battling a workforce shortage, and both issues were exacerbated by the COVID-19 pandemic. Relating to reimbursement levels, Abrams was quoted saying, "We've had programs closed because of it . . . Over the past several years, we've seen closures at everything from group homes to community support services. Right now, you also have a lot of programs where they have more beds and capacity, but they can't take anyone else because they don't have the staff for it. So, it's really a critical juncture right now."
New Jersey's FY2024 budget is set to include a $27 million state funding increase to rates and contracts for the behavioral health sector, matched by $10.5 million in federal funds. "But, that one investment is ultimately not going to bring reimbursement up to cover the cost of care," Abrams stated.
Click here to read more on this story, and click here to access the legislation itself.
