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Newsletter Vol. 8, No. 63

New Jersey Medicaid·NJ · Psychiatry·Coding
Effective date
Not stated
We identified it
Jun 20, 2026
Days to comply

Summary

New Jersey clarifies that partial care service billing must strictly exclude meal time, transport time, and non-active treatment time when determining full-day (5+ hours) or half-day (3-5 hours) eligibility. Providers submitting claims that don't meet these time requirements face administrative penalties, overpayment recovery, and potential program disqualification or criminal prosecution.

Action Required

Action needed
Immediately: Billing team must audit all partial care service claims to ensure time calculations exclude meals, transport, and non-active time. Providers must retrain clinical staff on active programming documentation requirements. Update billing system validation rules and claim submission templates to flag claims not meeting N.J.A.C. 10:66-2.5(d) time thresholds before submission. Implement a time-tracking audit process for partial care encounters. Contact Medicaid District Office if any claims under review are identified as non-compliant to voluntarily report overpayments and avoid administrative action.