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MedicaidPrior AuthHigh impact

Newsletter Vol. 19, No. 45

New Jersey Medicaid·NJ · Psychiatry·Prior Authorization
Effective date
Jul 1, 2009
We identified it
Jun 20, 2026
Days to comply

Summary

Effective July 1, 2009, New Jersey requires prior authorization for all partial care mental health services provided by independent clinics to NJ FamilyCare/Medicaid clients aged 18 and older. New admissions receive a 30-day grace period for assessment completion, after which FD-07 and FD-07A prior authorization forms must be submitted. Authorization periods cannot exceed 180 days, and initial service units are capped at 520 units.

Action Required

Action needed
By January 1, 2010: Billing team and clinical staff must implement the following: (1) Stop billing partial care services for NJ FamilyCare/Medicaid clients 18+ without prior authorization after the 30-day new admission grace period; (2) For new admissions: Complete comprehensive assessment within 30 calendar days, then submit completed FD-07 and FD-07A forms to the appropriate Medical Assistance Customer Center (MACC) by county; (3) For established clients: Stagger prior authorization requests over the six-month implementation period (July 1, 2009 – January 1, 2010), submitting 1/6 of your Medicaid census monthly with staggered start dates; (4) Ensure all prior authorization forms include: current DSM diagnosis with code, current medication list and response, clinical history (length of illness, hospitalizations, safety issues, comorbidities), recovery/treatment plan with community integration goals, and present clinical status documenting current utilization, hospitalization risk, screening center contacts, substance abuse/medical comorbidities, safety issues, and functional deficits; (5) Request service units based on current utilization (e.g., 5 hours/day × 2 days/week = 260 units); (6) Communicate acute mid-authorization changes to assigned Medicaid reviewer for reevaluation; (7) Send all completed requests via mail or fax to the appropriate county MACC office. Consequence: Claims will be denied without prior authorization after the 30-day grace period.