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Bill > A4207


NJ A4207

NJ A4207
Concerns standards for non-renewal or termination of certain health care professionals from insurance carrier's provider network.


summary

Introduced
06/01/2020
In Committee
06/01/2020
Crossed Over
Passed
Dead
01/11/2022

Introduced Session

2020-2021 Regular Session

Bill Summary

This bill requires carriers which offer managed care plans to establish a policy governing removal of health care providers from the provider network that provides, if a licensed health care professional has been participating in the carrier's provider network for five years or longer, the carrier may not fail to renew or terminate the professional's contract, unless the carrier: (1) provides the health care professional and the commissioner with written notice of the non-renewal or termination one year prior to the effective date of the non-renewal or termination, which documents the cause for the professional's non-renewal or termination; and (2) the commissioner finds that the non-renewal or termination is with good cause. The bill requires the Commissioner of Banking and Insurance to adopt regulations within 180 days of the date of enactment of this act, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), necessary to carry out the purposes of the bill, which are to include standards for what constitutes good cause for non-renewal or termination of a licensed health care professional.

AI Summary

This bill requires health insurance carriers that offer managed care plans to establish a policy governing the removal of healthcare providers from their provider networks. The key provisions are: 1. If a licensed healthcare professional has been participating in the carrier's provider network for five years or longer, the carrier cannot fail to renew or terminate the professional's contract unless the carrier provides the professional and the Commissioner of Banking and Insurance with one year's written notice that documents the cause for the non-renewal or termination, and the Commissioner finds that the action is with "good cause." 2. The Commissioner of Banking and Insurance is required to adopt regulations within 180 days to establish standards for what constitutes "good cause" for the non-renewal or termination of a licensed healthcare professional's contract.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 06/01/2020)

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