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New Jersey Expands Access to School-Based Behavioral Health Care Through Medicaid Reimbursement
Governor Phil Murphy signs bill A-3334, ensuring public schools' reimbursement for mental health services provided to Medicaid-covered students and their families.
In a significant move toward enhancing youth mental health, Governor Phil Murphy has signed bill A-3334, a legislation that expands the scope of reimbursable expenses for behavioral health services in New Jersey's K-12 public schools. The services targeted are those provided to students and their families who are beneficiaries of Medicaid.
Governor Murphy remarked, “It’s undeniable that many young people are facing mental health challenges right now and would benefit from the support of compassionate, trained professionals.” He added, "By ensuring schools will be reimbursed for the provision of behavioral health care services to students covered by Medicaid, this legislation will advance our ongoing efforts to expand affordability and access to the mental health support New Jersey children need."
The New Jersey Department of Human Services (DHS) and its Division of Medical Assistance and Health Services (DMAHS) will handle the reimbursement process for local education agencies. This aligns with initiatives like the Special Education Medicaid Initiative (SEMI), where public school districts receive reimbursement for a portion of the costs linked to providing health-related services to Medicaid-eligible students in special education programs.
Services covered under the new bill can be provided either in-person or via telehealth by either a licensed medical practitioner or a local education agency approved as a Medicaid provider. In instances where they cannot secure reimbursement from a legally liable third party, schools can submit a request for Medicaid reimbursement.
Human Services Commissioner Sarah Adelman said, “Ensuring access to youth mental health remains a top priority for the Administration.” Meanwhile, Dr. Angelica Allen-McMillan, Acting Commissioner of Education, emphasized the necessity of the move by stating that “promoting access to mental health and well-being is essential for student success.”
Sponsors of the legislation include Senator Vin Gopal, Assembly Majority Leader Louis D. Greenwald, Senate Majority Leader Teresa Ruiz, and Assembly Members Angelica Jimenez and Reginald Atkins. They lauded the legislation, emphasizing its potential to significantly enhance the delivery of school-based Medicaid services and expand behavioral health services in schools at no cost to families or schools.
Now that the bill is signed, DHS will seek federal approvals for the program. Over the next few years, once the program is approved, DMAHS, along with the New Jersey Departments of Education and Treasury, will assist schools in implementing a plan to submit Medicaid claims for reimbursement for these services.
