N.J. Stat. Ann. § 30:4D-6l

3. Any inmate who is an applicant for medical parole pursuant to the provisions of section 1 of P.L.1997, c.214 (C.30:4-123.51c) shall not be denied enrollment into the Medicaid program on the sole basis that the applicant is an inmate in a correctional facility. For an inmate who becomes enrolled in Medicaid while incarcerated in a correctional facility, payments for medical assistance under P.L.1968, c.413 (C.30:4D-1 et seq.) shall commence upon the inmate's release from the correctional facility.