The New Jersey “Nursing Home Quality of Care Improvement Fund Act” was signed into law on July 1, 2003, as P.L. 2003, C. 105, and was subsequently amended on June 29, 2004, as P.L. 2004, C. 41. The Act establishes a quarterly assessment on nursing homes in order to provide additional funds for improving the quality of care by increasing Medicaid reimbursement for services delivered to those senior citizens and other persons residing in New Jersey nursing homes. In some instances, the assessment may be passed on to residents or to a third-party payer. The law was made effective as of July 1, 2004.
The Department of Human Services is responsible for the oversight, coordination, and disbursement of fund monies. The New Jersey Division of Taxation is charged with the responsibility for collecting the quarterly assessments.
Effective July 1, 2019, the per diem assessment rate increased from $11.92 to $14.67 per non-Medicare day to applicable nursing homes. This adjustment to the annual assessment rate, calculated by the Department of Human Services, is necessary to achieve 6% of the aggregate amount of revenues received by nursing homes as outlined in the Act.
Disposition of Revenues
The monies collected from the nursing home provider assessment are statutorily transferred, through appropriation, to the General Fund and allocated for the support of nursing home programs designated by the Commissioner of Human Services. The remaining monies, after the transfer to the General Fund, along with any federal Medicaid funds received by the Commissioner, are distributed directly to qualifying nursing homes.
Additionally, revenue collected as a result of the July 1, 2019 rate increase will be reinvested into Medicaid payment rates to generate additional federal matching funds and deliver a net increase in resources to the industry.
Filing and Payment
All Long Term Care Facilities are required to file and pay electronically, on the NJ Nursing Home Provider Assessment Return, Form NHA-100, with the NJ Division of Taxation.
NHA-100 returns and payments are due on or before the 20th day of the month following the filing period. Any facility that has specialized long-term programs shall report that data for each program on a separate NHA-100 return. Returns are required to be filed for each calendar quarter, even if there were no receipts that were subject to the assessment for that particular quarter.
Note: If the due date falls on a weekend or holiday, the returns and payments are due the next business day. For due dates, visit the New Jersey Tax Calendar.