Supplemental appropriation of $25 million to DOH to assist certain mental health and addiction service providers transitioning to fee-for-service reimbursement system.

This bill provides $25 million in supplemental funding to New Jersey's Department of Health (DOH) to support mental health and addiction service providers transitioning from cost-based reimbursement contracts to a fee-for-service system. It reimburses providers for the difference between their actual fee-for-service revenue during fiscal year 2022 and their previous cost-based contract value, if that difference is positive. Only providers who billed Medicaid for all eligible services are eligible. The funds come first from unspent mental health program money, with additional General Fund money authorized if needed. This aims to prevent financial instability for providers during the state's ongoing transition to the new reimbursement model.