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Bill

A 5354

Increases access to substance use disorder treatment; Requires Medicaid coverage for substance use disorder services provided by community-based organizations.

2024-2025 Regular Session Introduced by Gary Schaer

New Jersey bill mandates Medicaid coverage for substance use disorder treatment at community-based organizations, expanding access beyond traditional medical facilities.

Introduced in the Assembly, Referred to Assembly Aging and Human Services Committee
#drugabuse #medicaid
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Bill Summary · A 5354

Legislative bill overview

Bill A 5354 expands Medicaid coverage to include substance use disorder (SUD) treatment services delivered by community-based organizations (CBOs) in New Jersey. Currently, Medicaid primarily covers SUD treatment through licensed medical facilities, leaving community-based providers outside the reimbursable system. This bill would require the state to pay these organizations for their services.

Why is this important

Community-based organizations often provide culturally competent, peer-led, and locally embedded treatment services that reach vulnerable populations traditional healthcare settings miss. Expanding Medicaid coverage could increase treatment capacity, reduce barriers to care for uninsured and underinsured individuals, and leverage existing community trust—particularly important given rising overdose deaths nationwide.

Potential points of contention

  • Reimbursement rate disputes: Determining what rates the state will pay CBOs and whether they're sufficient to sustain operations without compromising quality or staff compensation
  • Quality and accountability standards: Defining which CBOs qualify, what licensing or certification requirements apply, and how outcomes will be measured to ensure public funds are spent effectively
  • State budget impact: The fiscal cost of expanding Medicaid coverage, particularly if enrollment exceeds projections or if federal matching funds are limited

Compiled from official sources — confirm details with the bill’s official record.

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