New Jersey was supposed to be saving money in making the transition to managed care for Medicaid long-term care, but instead expects to spend an additional $125 million on the transition in the coming year.

State Sen. Paul A. Sarlo (D-Bergen and Passaic) expressed frustration that Gov. Chris Christie’s proposed budget for the fiscal year starting July 1 includes that additional funding to implement the state’s comprehensive Medicaid waiver.

Sarlo noted that the administration had projected $300 million in savings during the first three years of the waiver — which enters its third year in July.

The central feature of the waiver – and a big reason why savings were expected – is that the state is moving long-term Medicaid recipients to a managed care program. That aspect of the program does not begin until July 1 of this year.

The program is called a “waiver” because it requires the federal government to approve an alternate way of reimbursing the state and providers for Medicaid expenses.