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The S

tate will no longer pass through $11

million in federal matching funds to Hoboken Hospital. The hospital, once government owned, is being sold to a non-governmental entity and, pursuant to federal rules, no longer will be eligible to receive these matching funds. Ending the payment will allow the State to receive federal matching funds itself

to offset the cost of Charity Care.

  • The state will reduce the amount paid to Special Care Nursing Facilities for administration costs so that they are closer in line with what is paid to regular nursing homes, reasoning that administrative costs should be comparable for both types of facilities regardless of what types of patients are being treated. The change will save $4.7 million.

  • The new program will provide monthly cash assistance and 18 months of emergency assistance. The program will require new applicants to undergo a job search and, as appropriate, substance abuse treatment during an initial evaluation period.

The B

udget anticipates $35 million in savings because of the

addition of resources to the Medicaid fraud unit. The State will buy new equipment and hire more auditors to tighten enforcement of the Medicaid rules.

  • This change would require about 121,000 Medicaid recipients to move into managed care for their pharmaceuticals and basic medical care. The change would require the use of less expensive drugs and treatments when they are shown to be just as effective as more expensive forms of care. In addition, Medical Day Care and Personal Care services previously provided only on a fee-for-service basis will now be managed through the recipient’s HMO. Savings of $41.4 million are expected.

  • Governor Christie is insisting that public

employees pay their fair share of medical costs. By increasing co-payments and premiums to levels that are still below what federal employees pay, the State will save $323 million that will be used to pay for other critically important programs, and prevent increases in some of the highest sales, income and property taxes in the nation.

T

he State will save $4.3 million by funding the State

Council on the Arts at the same level as required by statute.

  • The Governor’s Budget Message calls for using $50 million of a surplus expected at the Motor Vehicle Commission. The diversion will not affect the Commission’s ability to provide customer service or perform its other functions.

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