Senate Commerce Committee Statement to Senate, No. 3133 — State of New Jersey (December 4, 2023)

Summary

A Senate Commerce Committee statement to the Senate on Senate Bill No. 3133, State of New Jersey, dated December 4, 2023, reporting the bill favorably with committee amendments. As amended, the bill bars any network agreement between a carrier, or its contracted vendor, and a health care provider from mandating only one form of payment, and bars restricting payment to out-of-network providers to one form. Carriers must give providers certain information before the first payment where a payment method includes a fee, and before changing available methods. A carrier may not use a provider's preferred payment method as a factor in credentialing; the bill is identical to Assembly Bill No. 4913 (2R).

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No.
3133

with
committee amendments

STATE
OF NEW JERSEY

DATED: DECEMBER
4, 2023

The Senate Commerce Committee reports favorably and
with committee amendments Senate Bill No. 3133.

As amended, the 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.

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

COMMITTEE AMENDMENTS

The committee amended the bill to replace the language
in the bill with new provisions concerning the method and manner of payment for
reimbursement by carriers, or a carrier’s contracted vendor, to health care
providers.

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