N.J. Admin. Code § 10:74-12.5
For any eligible person who applies for participation in the contractor's plan, but who is hospitalized prior to the time coverage under the plan becomes effective, such coverage shall not commence until the date such person is discharged from the hospital, and DMAHS shall be liable for payment for the hospitalization, including any charges for readmission within 48 hours of discharge for the same diagnosis. If an enrollee's disenrollment or termination becomes effective during a hospitalization, the contractor shall be liable for hospitalization until the date such person is discharged from the hospital, including any charges for readmission within 48 hours of discharge for the same diagnosis. The contractor shall notify DMAHS within 180 days of initial hospital admission.
N.J. Admin. Code § 10:74-12.5
See: 32 New Jersey Register 1352(a), 32 New Jersey Register 3426(a).
Added last sentence. Former N.J.A.C. 10:74-12.5, Payment of capitation to contractor, recodified to N.J.A.C. 10:74-12.4.