Senate Commerce Committee Statement to Senate, No. 2853 — State of New Jersey (October 22, 2020)

Summary

A Senate Commerce Committee statement to the Senate on Senate Bill No. 2853, State of New Jersey, dated October 22, 2020, reporting the bill favorably with committee amendments. The bill prohibits an insurance carrier from including in an agreement with a participating dentist a provision that both allows the carrier to deny payment for a covered procedure or service and prohibits the dentist from collecting the amount owed from the covered person. The amendments limit the bill to covered procedures and services, state that nothing in it exempts a participating dentist from the "Insurance Fraud Prevention Act," and add certain terms and definitions.

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No.
2853

STATE
OF NEW JERSEY

DATED: OCTOBER
22, 2020

The
Senate Commerce Committee reports favorably and with committee amendments Senate
Bill No. 2853.

This
bill prohibits certain provisions in agreements between insurance carriers and
dentists.

Specifically,
the bill prohibits a carrier from including in an agreement between the carrier
and a participating dentist a provision that:

(1) allows
the carrier to deny payment to a participating dentist for a covered procedure
performed or for a covered service provided on behalf of a covered person; and

(2) prohibits
the dentist from collecting the amount owed from the covered person for that
procedure or service.

COMMITTEE AMENDMENTS:

The committee amended the bill to:

(1) limit the provisions of the bill to covered
procedures and services;

(2) provide that nothing in the bill exempts or limits
a participating dentist from the provisions of the “Insurance Fraud Prevention
Act”; and

(3) add certain terms and definitions.

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