New Jersey Medicaid shifts reimbursement for behavioral health services from grant-funding to fee-for-service rates

May 14, 2016

The New Jersey Department of Human Services is set to start implementing fee-for-services (FFS) reimbursement for Medicaid and non-Medicaid behavioral health services on July 1. The FFS approach will reimburse provider organizations only for face-to-face services. To assist in the transition to the new system, the state aims to continue to provide traditional grant funding for six months. The state's goal is to create equity across the Division of Mental Health and Addiction Services system.