New Jersey 2024-2025 Regular Session

New Jersey Assembly Bill A382

Introduced
1/9/24  

Caption

"Health Care Consumer's Out-of-Network Protection, Transparency, Cost Containment and Accountability Act."

Impact

The bill would directly influence existing statutes related to health care billing, enhancing consumer protections and ensuring transparency in the health care system. Importantly, the legislation creates a standardized process for resolving disputes over out-of-network charges, involving peer review panels to assess the fairness of billed amounts. This framework is set to address the ongoing problem of exorbitant out-of-network charges reported by consumers, as well as to relieve financial stress on health care providers who may struggle with inadequate reimbursements from insurance carriers.

Summary

Assembly Bill A382, referred to as the 'Health Care Consumer's Out-of-Network Protection, Transparency, Cost Containment and Accountability Act', aims to reform health care billing practices in New Jersey. The bill is designed to protect consumers from unforeseen medical charges stemming from out-of-network providers, particularly in non-emergency situations. It mandates that health care providers disclose their network status to patients before appointments. If patients choose non-participating providers after this disclosure, those providers are required to provide a written estimate of expected costs. This aims to prevent 'surprise' balance bills after treatment, which often occur when patients unknowingly receive services from out-of-network providers.

Contention

While the bill aims to provide much-needed consumer protection and cost containment, there are potential points of contention regarding its implementation. Some stakeholders, including health care providers and insurers, may have concerns about the operational burden of complying with the disclosure requirements and the peer review processes. The balance between consumer protection and ensuring reasonable provider reimbursement is likely to be a subject of heated debate. Additionally, the bill excludes emergency situations from its provisions, which could lead to continued 'surprise' billing in those instances.

Companion Bills

NJ A1390

Carry Over "Health Care Consumer's Out-of-Network Protection, Transparency, Cost Containment and Accountability Act."

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