Bill
Bill > S3996
NJ S3996
Requires availability of electronic fund transfers by health insurance carriers to reimburse covered persons.
summary
Introduced
01/14/2025
01/14/2025
In Committee
01/14/2025
01/14/2025
Crossed Over
Passed
Dead
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill requires a carrier, or the carrier's contracted vendor, to allow payment to a covered person for reimbursement to include reimbursement through an electronic funds transfer. A carrier is to include, as part of its health benefits plan, notification to a covered person: (1) if a reimbursement payment through an electronic funds transfer has a fee associated with it; and (2) of the instructions on the carrier's, or the carrier's contracted vendor's, website to select an electronic funds transfer as the means to receive a reimbursement payment. Any violation of the bill's provisions may be subject to enforcement by the Department of Banking and Insurance.
AI Summary
This bill requires health insurance carriers in New Jersey to offer electronic funds transfer (EFT) as a method of reimbursement for covered persons. Specifically, carriers must allow EFT payments and include two key notifications in their health benefits plans: (1) disclosure of any fees associated with EFT reimbursements, and (2) clear instructions on how to select EFT as a reimbursement method on their website. The bill defines a "carrier" broadly as various types of health insurance providers, and a "covered person" as an individual eligible for benefits under a health plan. The bill covers most health insurance plans but excludes specific types of limited coverage plans like accident-only or Medicare supplement plans. If a carrier violates these requirements, the Department of Banking and Insurance can enforce penalties, including imposing civil penalties and requiring the carrier to reimburse any fees incurred by the covered person due to non-compliance. The bill will take effect 90 days after enactment and will apply to health benefit plans initiated or renewed on or after that date.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 01/14/2025)
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/S3996 |
| BillText | https://pub.njleg.gov/Bills/2024/S4000/3996_I1.HTM |
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