Sponsored by:
Senator GORDON M. JOHNSON
District 37 (Bergen)
Senator NICHOLAS P. SCUTARI
District 22 (Middlesex, Somerset and Union)
Co-Sponsored by:
Senators Gopal, Cryan and Pou
SYNOPSIS
Requires health insurance carriers to reimburse health care providers using check or electronic funds transfer.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning reimbursement for health care providers and covered persons and supplementing P.L.1999, c.155 (C.17B:30-26 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A payer shall remit payment for a claim to a health care provider solely through either a check or an electronic funds transfer in compliance with the federal "Health Insurance Portability and Accountability Act of 1996," Pub.L.104-191. No payer shall remit payment for a claim to a health care provider using a method not authorized pursuant to this subsection.
b. No payer or carrier shall reimburse a covered person using a virtual credit card.
c. As used in this section, “virtual credit card” means a single-use credit card exclusively provided in an electronic or digital format.
2. This act shall take effect on the 90th day after the date of enactment and shall apply to claims submitted on or after that date.
STATEMENT
This bill requires health insurance carriers to remit payment to a health care provider solely through either a check or electronic funds transfer in compliance with federal law. The bill prohibits health insurance carriers from remitting payment for a claim to a health care provider using any form of reimbursement not authorized under the bill. The bill also prohibits health insurance carriers from reimbursing covered persons using a virtual credit card, which is defined to mean a single-use credit card exclusively provided in an electronic or digital format.