New Jersey 2026-2027 Regular Session

New Jersey Assembly Bill A4244

Introduced
2/19/26  

Caption

Establishes Medicaid Managed Care Organization Oversight Program.

Impact

If enacted, A4244 will mandate that each MCO submit updated data about healthcare providers and beneficiaries quarterly. This data will be vital for assessing the adequacy of the provider networks and ensuring that beneficiaries have timely access to necessary services. The bill will also improve the administrative sharing of beneficiary information with county welfare offices, enhancing their ability to enroll and re-enroll individuals in these critical healthcare programs. This movement towards transparency and accountability is anticipated to make significant strides in addressing the gaps highlighted by the audit.

Summary

Bill A4244 seeks to establish a Medicaid Managed Care Organization (MCO) Oversight Program within the New Jersey Division of Medical Assistance and Health Services. The objective of this program is to ensure that accessible and quality healthcare is available to individuals enrolled in the NJ FamilyCare and Medicaid programs. The need for this oversight program stems from a 2016 audit indicating significant deficiencies in MCOs' provisions, particularly regarding access to healthcare services, accurate provider directories, and claims reporting.

Follow_up

Furthermore, A4244 requires the development of an independent verification system to assess the accuracy of provider data annually. This measure aims to ensure that 100% of the providers listed in MCO directories are eligible Medicaid providers. As part of continuous oversight, the Office of the State Auditor is also tasked with conducting a follow-up audit on MCO provider networks three years post-enactment, which highlights the bill's emphasis on long-term accountability and accessibility for healthcare services.

Contention

Notably, the bill includes provisions for penalties against MCO contractors that fail to comply with the reporting requirements. MCOs could face fines starting at $50,000 for any lapses, which underscores the bill's strong enforcement mechanisms designed to drive compliance. The potential of barring non-compliant MCOs from contracting for five years adds another level to the contentious debate surrounding the bill, wherein proponents argue it's necessary for consumer protection while opponents may view it as overly punitive for some contractors.

Companion Bills

NJ S2810

Same As Establishes Medicaid Managed Care Organization Oversight Program.

NJ S1818

Carry Over Establishes Medicaid Managed Care Organization Oversight Program.

NJ A3574

Carry Over Establishes Medicaid Managed Care Organization Oversight Program.

Similar Bills

OH HB780

Enact the Medicaid Savings Act

OH SB386

Enact the Medicaid Savings Act

OH HB130

Regards Medicaid Estate Recovery Program notification requirement

HI SR116

Urging The Governor To Determine A Course Of Action For The State, Should The Federal Government Cut Funding For Medicaid.

HI HCR187

Urging The Governor To Determine A Course Of Action For The State, Should The Federal Government Cut Funding For Medicaid.

HI HR180

Urging The Governor To Determine A Course Of Action For The State, Should The Federal Government Cut Funding For Medicaid.

HI SCR144

Urging The Governor To Determine A Course Of Action For The State, Should The Federal Government Cut Funding For Medicaid.

NJ S2742

Requires Medicaid fee-for-service coverage of managed long term services and supports when beneficiary is pending enrollment in managed care organization.