New Jersey balks at paying $37 million to counties in Medicaid dispute
The state of New Jersey has been ordered to repay counties at least $37.3 million, the amount they overpaid Medicaid for care in nursing homes, psychiatric facilities and some school districts, Rep. Bill Pascrell Jr., D-Paterson, announced Tuesday.
Passaic County is likely to receive more than $12 million, Pascrell said.
A letter the federal Centers for Medicare & Medicaid Services sent the state last month said New Jersey must pay $20.9 million to county nursing facilities, $2.5 million to state and county psychiatric facilities and $13.9 million to school districts.
"I applaud CMS for its decision to reimburse New Jersey counties for Medicaid overpayments they made during the recession," Pascrell said. "I urge the state to act expeditiously to complete this process and redistribute these funds."
However, a spokeswoman for the state Department of Human Services said New Jersey is disputing the entire $37.3 million payment.