Assembly Panel Moves Conaway, Eustace Measure to Create Medicaid Smart Card Pilot Program & Address Fraud

Measure Aims to Curb Abuse and Help Residents’ Reduce Monthly Medicaid Costs

(TRENTON) – Legislation sponsored by Assembly Democrats Herbert Conaway, Jr. and Timothy J. Eustace to explore ways to increase efficiency in the state Medicaid program and reduce the average monthly costs for recipients was advanced by an Assembly panel on Monday.

The bill (A-4062) would establish the Medicaid Smart Card Pilot Program in the Division of Medical Assistance and Health Services of the Department of Human Services. The pilot program would be designed to reduce average monthly cost to Medicaid for recipients within the pilot program area by an amount that is relative to the costs of implementing the pilot program.

Conaway and Eustace note the objective of the pilot program is to reduce the total amount of Medicaid expenditures by reducing the average cost per designated recipient. Sponsors also note the bill would also discourage Medicaid card fraud and abuse.

“Many residents rely on Medicaid services for healthcare,” said Conaway (D-Burlington). “Developing a more efficient system for Medicaid would preserve the integrity of the program and make it more accessible to those who truly need it. This pilot program would help us discover if and how we may improve the system.”

“Fraudulent behavior can be contributed to the rising costs of Medicaid in the state,” said Eustace (D-Bergen, Passaic). “The system the state uses to distribute and track Medicaid must protect the interests of the seniors and residents who depend on it.”

The Commissioner of Human Services will determine the geographic are