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Bill > S530
NJ S530
NJ S530"New Jersey Respect for Physicians Act;" requires prompt response by insurers to requests for prior authorization of health care services.
summary
Introduced
01/09/2024
01/09/2024
In Committee
01/09/2024
01/09/2024
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill, entitled the "New Jersey Respect for Physicians Act" amends the "Health Claims Authorization, Processing and Payment Act" to require health insurance carriers to contact the hospital and physician within four hours to discuss a decision to authorize certain health care services and to reduce the amount of time in which a carrier must respond to requests for prior authorization. In the case of a request for prior authorization for a covered person who will be receiving inpatient hospital services or health care services in an outpatient or other setting, current law requires the insurance carrier to communicate the denial of the request or the limitation imposed on the requested service to the hospital or physician within a time frame appropriate to the medical exigencies of the case, but no later than 15 days following the time the request was made. This bill would reduce that to a time frame appropriate to the medical exigencies of the case but no later than 48 hours following the time the request was made. The bill similarly reduces the amount of additional time permitted if the payer needs additional information. With respect to authorizations for a covered person who is currently receiving inpatient hospital services or care rendered in the emergency department of a hospital, the law would remain the same and a denial or limitation shall be communicated no later than 24 hours following the time the request was made.
AI Summary
This bill, known as the "New Jersey Respect for Physicians Act," aims to expedite the process by which health insurance carriers, referred to as "payers," respond to requests for prior authorization of healthcare services, which is a process where an insurer must approve a medical service before it is provided to ensure it is covered by the patient's health benefits plan. The bill significantly reduces the maximum time a payer has to respond to most prior authorization requests from 15 days to 48 hours, and this timeframe also applies if the payer needs additional information to make a decision, with the clock restarting once that information is received. For services already being provided to a patient who is currently hospitalized or in an emergency department, the existing 24-hour response time remains unchanged. A key new provision requires payers to make reasonable attempts to contact the hospital and physician by phone within four hours of receiving a request for authorization for inpatient or outpatient services to discuss the request. If a payer fails to respond within the established timeframes, the request is automatically considered approved, and the payer becomes responsible for payment.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 01/09/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S530 |
| BillText | https://pub.njleg.gov/Bills/2026/S1000/530_I1.HTM |
| BillText | https://pub.njleg.gov/Bills/2024/S1000/530_I1.HTM |
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