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Bill > S4076


NJ S4076

NJ S4076
Requires study and implementation of reference-based pricing for SHBP and SEHBP.


summary

Introduced
06/30/2023
In Committee
06/30/2023
Crossed Over
Passed
Dead
01/08/2024

Introduced Session

2022-2023 Regular Session

Bill Summary

This bill requires the State Health Benefits Commission and School Employees' Health Benefits Commission to conduct comprehensive reviews of reference-based pricing health benefits models and the fiscal impact of implementing reference-based pricing for the State Health Benefits Program and the School Employees' Health Benefits Program. The review must be conducted in consultation with the actuary of each program and the carriers under contract with each program. The review must identify areas of health care benefits and services where reference-based pricing can be implemented. The bill specifies the areas and issues to be evaluated by each commission and requires each commission to issue a final report on its findings and recommendations within 180 days after the effective date of the bill. Within one year following the effective date of this bill, each commission must implement reference-based pricing for each contract entered into with a carrier after the effective date in a manner that places limitations on reimbursement rates using Medicare rates as the reference point. Each commission, prior to implementation, must adopt a written report detailing how the reference percentages have been set by each commission, the expected cost savings, and the existing negotiated cost ranges by procedure that each carrier under contract with each commission has in place prior to implementation of the reference-based price limitation.

AI Summary

This bill requires the State Health Benefits Commission and the School Employees' Health Benefits Commission to conduct a comprehensive review of reference-based pricing health benefits models and the fiscal impact of implementing reference-based pricing for the State Health Benefits Program (SHBP) and the School Employees' Health Benefits Program (SEHBP). The review must identify areas where reference-based pricing can be implemented, evaluate the anticipated costs and savings, and assess the outcomes of reference-based pricing in other jurisdictions. Within one year, the commissions must implement reference-based pricing for new contracts with carriers, using Medicare rates as the reference point, and adopt a report detailing the reference percentages, expected cost savings, and existing negotiated cost ranges.

Committee Categories

Health and Social Services

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate Health, Human Services and Senior Citizens Committee (on 06/30/2023)

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