Sponsored by:
Assemblyman JOHN J. BURZICHELLI
District 3 (Cumberland, Gloucester and Salem)
Assemblyman DANIEL R. BENSON
District 14 (Mercer and Middlesex)
Assemblywoman CAROL A. MURPHY
District 7 (Burlington)
Senator VIN GOPAL
District 11 (Monmouth)
Co-Sponsored by:
Assemblywomen Reynolds-Jackson, Jimenez, Assemblymen Freiman, Karabinchak, Holley, Assemblywomen Quijano and Downey
SYNOPSIS
Requires carriers that offer health benefits plans to provide new or existing subscribers with notification of certain hospital and health system contract expirations.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning health benefits plans and hospital and health system contract expirations and supplementing P.L.1997, c.192 (C.26:2S-1 et al.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Notwithstanding the provisions of any law to the contrary, any carrier that offers a health benefits plan shall provide any new or existing subscriber with notification of any hospital or health system contract scheduled to expire within six months of the effective or renewal date of the plan. The hospital or health system contract expiration date shall be communicated to all subscribers during the open enrollment period of the plan.
b. A carrier shall not automatically renew a contract with a hospital or health system unless the hospital or health system agrees to an automatic renewal clause at the time the contract is entered into.
2. This act shall take effect on the 90th day next following the date of enactment, and shall apply to any health benefits plan delivered, issued, executed or renewed in this State, or approved for issuance or renewal in this State by the Commissioner of Banking and Insurance, on or after that date.
STATEMENT
This bill provides that, notwithstanding the provisions of any law to the contrary, any carrier that offers a health benefits plan is required to provide new and existing subscribers with notification of any hospital or health system contracts scheduled to expire within six months of the effective date or renewal date of the plan. The hospital or health system contract expiration date must be communicated to all subscribers during the open enrollment period of the plan.
The bill prohibits a carrier from automatically renewing a contract with a hospital or health system unless the hospital or health system agrees to an automatic renewal clause at the time the contract is entered into.