Senate Commerce Committee Statement to Assembly, No. 4913 (2R) — State of New Jersey (December 4, 2023)

Summary

A Senate Commerce Committee statement to the Second Reprint of Assembly, No. 4913, State of New Jersey, dated December 4, 2023, reporting the bill favorably. The bill prohibits network agreements between a carrier, or its contracted vendor, and a health care provider from mandating only one form of payment for health or dental care services, and bars restricting out-of-network providers to one form of payment. Carriers must give providers certain information before a first payment where an available payment method includes a fee, and before changing payment methods. A carrier may not use a provider's preferred payment method as a factor in credentialing decisions.

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SENATE COMMERCE COMMITTEE

STATEMENT TO

[Second Reprint]

ASSEMBLY,
No. 4913

STATE
OF NEW JERSEY

DATED: DECEMBER
4, 2023

The Senate Commerce Committee reports favorably
Assembly Bill No. 4913 (2R).

Under the this bill, 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.

As reported, Assembly
Bill No. 4913 (2R) is identical to Senate Bill No. 3133, as amended and
reported by the committee on this date.

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