New Jersey Early Intervention Cost Share Fact Sheet

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1. The State does not have policies, procedures, methods, descriptions, and/or assurances to implement EI. It promises the federal government to have these in place by 6/29/07.*
   
   
2. N.J.’ s payment system for Part C is on file at the U.S. Department of Education.*


3. By 4/30/06 NJ presented a new policy to describe the uses of funds to be spent on EI.*


4. NJ has a central directory on EI services, resources, and experts available in NJ and research and demonstration projects being conducted.*
5. NJ does not assure there is the required State Interagency Coordinating Counsel.*


6. Salaries*:
   • Part C coordinators & Projects- $1,934,254
   • Supplies/Materials-$77,300
   • Central Management Office- $1,335,661
   • Auditing Cost- $25,095
   • Indirect Cost- $167,361
   • SICC Activities- $38,000
   • Service Coordination- $5,571,911
   • REICs- $2,755,000

*Annual State Plan, Part C, 4/30/06

7. Proposed funding for SFY is: (State Memo, 9/1/06)
1. $11,904,582 Federal IDEA, Part C
2. $78,487,000 State appropriation
3. $300,000 for CMO
4. $9,600,000 from Medicaid reimbursement
5. $6,000,000 family cost share


8. In 2006, NJ had 17,499 children in EI, spending $107 million. Of this, $81 million was State, and $26 million was Federal. (Policy Research Institute, 1/30/07)


9. A family of 4 earning below 350% of 2006 Federal Poverty Level ($70,000) pays nothing for EI services. (COSAC Government Watch). A family of 3 has a cut off of $58,100.


10. Current proposal has families pay fee-based % of actual costs of services.(This was changed to a flat rate per service hour on 12/27/06)


11. Cost share increases as family income goes up.


12. Fees capped at 10% of family income. Most recent income tax return is required.


13. Increased numbers of autistic children coming to NJ is among reason given for cost increase.


14. EI has seen an 8-20% annual growth, with escalating costs. The 2007 State budget gave a $20 million increase, with caveat the family revenue must reach $3 million. Part of additional costs used to reimburse federal accounts from SFY 2006.


15. Proposed changes:
1. Progressive monthly cost share charged to a progressive percentage of direct EI services.
2. Progressive percentage is increased across 9 tiers, up to point where families pay 100% of the service costs.
3. Progressive co-percentage begins at 5% for families at 350% FPL.
4. Families responsible for costs up to 10% of their annual income.
5. When more than 1 child is in EI, co-percentage based on child with highest cost in a calendar month.
6. Families have 30 days to pay. If no payment within 30 days of billing, family gets final notice of nonpayment unless payment received in 14 calendar days. (Undated Corzine/Jacobs Memo)


16. Household members are required to verify their income. Their financial situation is reviewed:
    1. Annually, coinciding with IFSP date
    2. Within 30 days of parent request to change income information.
    3. When parent requests to change their family cost participation option
    4. When changes in NJEIS Family Cost Participation Policies & Procedures.


17. Refusal to provide financial information and acceptance of EI Direct Services in IFSP requires family to pay for full cost of services.


18. The CMO usually bills families 60 calendar days after the provider is paid for the services. Adjustments include claims to Medicaid and crediting payments from families.


19. Providers have 90 days from date of service to submit CMO claims.*(Family Cost Share Q&A, Undated)


20. Families may reject IFSP if not willing to pay.


21. Though the cost share proposals were not approved on either the State or Federal level, implementation date was scheduled for 2/1/07.


22. “NJ Risks Leaving Disabled Kids Behind”, L. Bruno, Daily Record, 2/4/07:
1. Cost share postponed until 2/28/07.
2. NJP&A threatened to sue NJEIS
3. NJ has very high cost of living.