Department of Human Services | Medicaid Provider Reimbursement Rates Increased Jan. 1
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For Immediate Release:
January 2, 2008

For Information, Contact:
Suzanne Esterman, 609-292-3703

TRENTON – Human Services Commissioner Jennifer Velez today announced an increase in Medicaid rates to pediatric providers took effect Jan. 1, 2008.Like many states, New Jersey's budget constraints have prevented the state from increasing rates to physicians who see Medicaid clients and the rates remained static for about 20 years. As of the beginning of the year, Medicaid providers who see patients under 21 years of age will be reimbursed at a rate as much as four-times higher than previously.

“We've known our reimbursement rates needed to be improved,” said Commissioner Velez, “and we're grateful to Governor Corzine for putting the necessary funds into the budget so we can begin to address this issue.”

This summer, Governor Corzine added $10 million in state funds for Medicaid reimbursement rates for calendar year 2008. The federal government will match the funding for a total $20 million dedicated to pediatric providers.

This means that physicians who previously were paid $23.03 for a child's visit, now will be paid $73.70 and dentists who previously were paid $18.02 for an examination, now will be paid $64.

“These new rates will benefit existing Medicaid providers and will help the Department of Human Services attract new ones,” said Commissioner Velez. “It's a big step toward providing more access for our clients.”

In New Jersey, more than 1 million residents receive services through Medicaid. Of those, 576,000 are children.

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