CHERRY HILL, NJ – Today, U.S. Congressmen Donald Norcross (NJ-01), Bill Pascrell, Jr. (NJ-09) and Tom MacArthur (NJ-03), and the entire New Jersey congressional delegation, introduced legislation to ensure New Jersey hospitals and healthcare facilities are properly reimbursed for services after the Trump administration harmed Garden State hospitals by reversing a longstanding policy.

“This is all about fairness for New Jersey families and making sure our state is not again crushed by another misguided Trump Administration policy,” said Congressman Donald Norcross. “In South Jersey, our world-class hospital systems are growing and providing great care, but the Trump Administration wants to take away nearly $7 million that’s helping our most vulnerable families. There is no good reason why New Jersey’s hospitals and healthcare facilities should not receive their fair share of Medicare dollars and be able to fairly recruit their workforce. Our bill rightfully addresses equity in Medicare reimbursements and allows New Jersey’s hospitals to continue providing quality and affordable care.”

“The Trump administration has again decided to come after New Jersey,” said Congressman Bill Pascrell. “For the eight years of the Obama presidency and even before that, the delegation came together in support of a wage index floor for all-urban states. This request was always administratively renewed. We are seeking a legislative fix now that the Trump White House shockingly denied our request. By eliminating the imputed floor policy, the Centers for Medicare and Medicaid Services (CMS) will bleed dry healthcare providers in the state. This in turn makes it harder for these hospitals and healthcare facilities to recruit their workforce, since they will now be forced to compete with neighboring states that benefit from the rural floor and are reimbursed at higher rates. The impact of Trump’s new policy is significant.”

“For years this policy has ensured that New Jersey hospitals receive their fair share of Medicare dollars,” said Congressman Tom MacArthur. “Last year alone this policy brought over $36 million to hospitals in our state so they can take better care of New Jerseyans. Our Congressional delegation has always been united in defense of our hospitals, and we won’t stop now. I’m proud to be leading this effort in Congress to undo this unfair decision.”

The Imputed Rural Floor policy was put into place in 2005 to correct years of unequal treatment for New Jersey’s hospitals. The policy provided them with benefits similar to those granted to hospitals in 47 other states through the longstanding application of a rural hospital wage index. The imputed floor is meant to ensure that New Jersey hospitals are not unfairly disadvantaged by the state’s all-urban status. This policy has been extended consistently until the recently finalized Fiscal Year 2019 Medicare Hospital Inpatient Prospective Payment (IPPS) rule, where the Trump administration permanently ended the imputed floor. The proposed legislation is necessary to reverse this harmful decision and restore equitable reimbursement for state healthcare providers.

The entire New Jersey delegation sent bipartisan letters to CMS in February and May outlining the importance of the imputed floor to New Jersey hospitals and their patients, and urging CMS to extend the policy.

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Contact: Ally Kehoe, Communications Director
ally.kehoe@mail.house.gov