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Bill > S776


NJ S776

NJ S776
Requires carriers to offer health care providers more than one method of payment for reimbursement.


summary

Introduced
01/09/2024
In Committee
01/09/2024
Crossed Over
Passed
01/09/2024
Dead
01/09/2024
Signed/Enacted/Adopted
01/09/2024

Introduced Session

2024-2025 Regular Session

Bill Summary

This bill provides that any network agreement between a carrier, or the carrier's contracted vendor, and a health care provider for the provision of health or dental care services is prohibited from mandating only one form of payment to the health care provider. A carrier, or the carrier's vendor, is also prohibited from restricting the method of payment to an out-of-network health care provider providing out-of-network covered services to only one form of payment. The bill also requires a carrier, or the carrier's contracted vendor, to provide certain information to a health care provider, prior to initiating its first payment to the health care provider, where one of the available payment methods includes a fee and before changing the available payment methods. The bill prohibits a carrier from using a health care provider's preferred method of payment as a factor when deciding whether to provide credentials to a health care provider.

AI Summary

This bill requires insurance companies, health service corporations, and similar entities (referred to as "carriers") to offer health care providers more than one payment method for reimbursement, such as electronic funds transfer or check, and prohibits them from forcing providers to accept only one method. This applies to both in-network and out-of-network providers. If a payment method involves a fee, the carrier must inform the provider about potential fees and how to select different payment options before the first payment or when options change. Furthermore, carriers cannot consider a provider's preferred payment method when deciding whether to grant them credentials, and any contract attempting to waive these requirements will be void. Violations can result in penalties and reimbursement for documented fees incurred by the provider.

Committee Categories

Business and Industry

Sponsors (5)

Last Action

Withdrawn Because Approved P.L.2023, c.247. (on 01/09/2024)

bill text


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