New Jersey News: Sherrill Signs Audit Reform Bill Into Law

An effort to fix outdated audit rules for New Jersey home care providers just reached the finish line. ​

Gov. Mikie Sherrill has signed legislation modernizing financial reporting and audit requirements for New Jersey home care agencies, delivering a win for providers after sustained advocacy by HCAOA New Jersey. 

Sherrill signed S3463/A4790 on July 20, following unanimous, bipartisan passage in both the Senate and Assembly on June 30. Sponsored by Sens. Gordon M. Johnson, D-Bergen, and Anthony M. Bucco, R-Morris, the law raises the Medicaid audit threshold for Health Care Service Firms from $250,000 to $500,000, extends the audit submission deadline to Sept. 30, modernizes financial reporting requirements, and allows qualified out-of-state certified public accountants to conduct audits, among other changes. 

The reforms preserve New Jersey's strong oversight framework while removing requirements that had become unnecessarily burdensome and costly for agencies to meet. 

HCAOA New Jersey championed the reforms since they were introduced, working with chapter leaders, engaged members, bill sponsors, and the association's contract lobbyist. Members testified before lawmakers, met with legislators, and responded to advocacy alerts throughout the process. 

The law builds on an earlier administrative change from the New Jersey Division of Consumer Affairs, which extended Health Care Service Firm registration deadlines and gave agencies additional time to complete required financial reporting, which would have been required by June 30, 2026. That change offered short-term relief; S3463/A4790 provides a longer-term legislative solution by modernizing the underlying statutory requirements. 

The legislation's unanimous, bipartisan passage and swift signature reflect broad agreement that home care providers should be able to spend more time caring for New Jersey residents and less time navigating outdated administrative requirements. 
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Members with questions can contact HCAOA Director of Government Relations Allison Cramer.