New Jersey Medicaid Moving Behavioral Health Reimbursement From Grant-Funded To FFS Rates

On July 1, 2016, the New Jersey Department of Human Services (DHS) will begin implementing fee-for-services (FFS) reimbursement for Medicaid and non-Medicaid behavioral health services. Under the FFS approach, provider organizations will be reimbursed only for face-to-face services. To help provider organizations transition to the new system, DHS intends to continue to provide traditional grant funding for six months.

According to a DHS presentation to provider organizations about the transition, “Transition To Fee For Service; Overview For Provider Meetings,” the state’s goal for the transition is creating equity across the DMHAS system. DHS defined . . .