NJ owes counties $37M in Medicaid repayments

New Jersey owes its counties $37 million because they overpaid the state in Medicaid expenses under President Barack Obama’s stimulus package following the Great Recession, U.S. Rep. Bill Pascrell Jr. (D) said Tuesday, according to an NJ.com report.

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The stimulus package, which the Congressional Budget Office says created or saved millions of jobs, gave extra funding to Medicaid as the recession forced many Americans to turn to the federal program for healthcare coverage. New Jersey counties contributed an additional $2.7 billion, but that was too high, according to the report.

A July 2014 report by the Department of Health and Human Services inspector general said that 17 of the state’s 21 counties may have overpaid the state to fund Medicaid, according to the report.

Rep. Pascrell said Tuesday that CMS informed the state it must pay the counties back. “I applaud CMS for its decision to reimburse New Jersey counties for Medicaid overpayments they made during the recession,” Rep. Pascrell said, according to the report. “I urge the state to act expeditiously to complete this process and redistribute these funds.”

However, Gov. Chris Christie’s (R) administration plans to appeal the decision. In 2014, CMS Deputy Director Kristin Fan told the state it was “in compliance” with the funding guidelines created under the stimulus package.

“The department continues to dispute the audit findings and now will move forward with a formal appeal to the federal Departmental Appeals Board,” said Nicole Brossoie, a spokeswoman for the state Department of Human Services, according to the report.

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