S164

An Act requiring health benefits coverage for hearing aids and cochlear implants, amending P.L.2008, c.126 and supplementing P.L.2007, c.103 (C 52:14-17.46).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 2 of P.L.2008, c.126 (C.17:48-6gg) is amended to read as follows:

2. a. A hospital service corporation contract that provides hospital and medical expense benefits and is delivered, issued, executed or renewed in this State pursuant to P.L.1938, c.366 (C.17:48-1 et seq.), or approved for issuance or renewal in this State by the Commissioner of Banking and Insurance, on or after the effective date of this act, shall provide coverage for medically necessary expenses incurred in the purchase of a hearing aid or cochlear implant for a covered person [15] 21 years of age or younger, as provided in this section.

b. A hospital service corporation contract shall provide coverage that includes the purchase of a hearing aid for each ear, when medically necessary and as prescribed or recommended by a licensed physician or audiologist. [A hospital service corporation may limit the benefit provided in this section to $1,000 per hearing aid for each hearing-impaired ear every 24 months. A covered person may choose a hearing aid that is priced higher than the benefit payable under this section and may pay the difference between the price of the hearing aid and the benefit payable under this section, without financial or contractual penalty to the provider of the hearing aid.] A hospital service corporation may limit the benefit provided in this section to one hearing aid for each hearing-impaired ear every 24 months.

c. A hospital service corporation contract shall provide coverage of the cost of treatment related to cochlear implants, including procedures for the implantation of cochlear devices and costs for any parts, attachments, or accessories of the device.

d. The benefits shall be provided to the same extent as for any other condition under the contract.

e. This section shall apply to those hospital service corporation contracts in which the hospital service corporation has reserved the right to change the premium.

(cf: P.L.2008, c.126, s.2)

2. Section 3 of P.L.2008, c.126 (C.17:48A-7dd) is amended to read as follows:

3. a. A medical service corporation contract that provides hospital and medical expense benefits and is delivered, issued, executed or renewed in this State pursuant to P.L.1940, c.74 (C.17:48A-1 et seq.), or approved for issuance or renewal in this State by the Commissioner of Banking and Insurance, on or after the effective date of this act, shall provide coverage for medically necessary expenses incurred in the purchase of a hearing aid or cochlear implant for a covered person [15] 21 years of age or younger, as provided in this section.

b. A medical service corporation contract shall provide coverage that includes the purchase of a hearing aid for each ear, when medically necessary and as prescribed or recommended by a licensed physician or audiologist. [A medical service corporation may limit the benefit provided in this section to $1,000 per hearing aid for each hearing-impaired ear every 24 months. A covered person may choose a hearing aid that is priced higher than the benefit payable under this section and may pay the difference between the price of the hearing aid and the benefit payable under this section, without financial or contractual penalty to the provider of the hearing aid.]A medical service corporation may limit the benefit provided in this section to one hearing aid for each hearing-impaired ear every 24 months.

c. A medical service corporation contract shall provide coverage of the cost of treatment related to cochlear implants, including procedures for the implantation of cochlear devices and costs for any parts, attachments, or accessories of the device.

d. The benefits shall be provided to the same extent as for any other condition under the contract.

e. This section shall apply to those medical service corporation contracts in which the medical service corporation has reserved the right to change the premium.

(cf: P.L.2008, c.126, s.3)

3. Section 4 of P.L.2008, c.126 (C.17:48E-35.31) is amended to read as follows:

4. a. A health service corporation contract that provides hospital and medical expense benefits and is delivered, issued, executed or renewed in this State pursuant to P.L.1985, c.236 (C.17:48E-1 et al.), or approved for issuance or renewal in this State by the Commissioner of Banking and Insurance, on or after the effective date of this act, shall provide coverage for medically necessary expenses incurred in the purchase of a hearing aid or cochlear implant for a covered person [15] 21 years of age or younger, as provided in this section.

b. A health service corporation contract shall provide coverage that includes the purchase of a hearing aid for each ear, when medically necessary and as prescribed or recommended by a licensed physician or audiologist. [A health service corporation may limit the benefit provided in this section to $1,000 per hearing aid for each hearing-impaired ear every 24 months. A covered person may choose a hearing aid that is priced higher than the benefit payable under this section and may pay the difference between the price of the hearing aid and the benefit payable under this section, without financial or contractual penalty to the provider of the hearing aid.]A health service corporation may limit the benefit provided in this section to one hearing aid for each hearing-impaired ear every 24 months.

c. A health service corporation contract shall provide coverage of the cost of treatment related to cochlear implants, including procedures for the implantation of cochlear devices and costs for any parts, attachments, or accessories of the device.

d. The benefits shall be provided to the same extent as for any other condition under the contract.

e. This section shall apply to those health service corporation contracts in which the health service corporation has reserved the right to change the premium.

(cf: P.L.2008, c.126, s.4)

4. Section 5 of P.L.2008, c.126 (C.17B:26-2.1aa) is amended to read as follows:

5. a. An individual health insurance policy that provides hospital and medical expense benefits and is delivered, issued, executed or renewed in this State pursuant to chapter 26 of Title 17B of the New Jersey Statutes, or approved for issuance or renewal in this State by the Commissioner of Banking and Insurance, on or after the effective date of this act, shall provide coverage for medically necessary expenses incurred in the purchase of a hearing aid or cochlear implant for a covered person [15] 21 years of age or younger, as provided in this section.

b. A policy shall provide coverage that includes the purchase of a hearing aid for each ear, when medically necessary and as prescribed or recommended by a licensed physician or audiologist. [An insurer may limit the benefit provided in this section to $1,000 per hearing aid for each hearing-impaired ear every 24 months. A covered person may choose a hearing aid that is priced higher than the benefit payable under this section and may pay the difference between the price of the hearing aid and the benefit payable under this section, without financial or contractual penalty to the provider of the hearing aid.]An insurer may limit the benefit provided in this section to one hearing aid for each hearing-impaired ear every 24 months.

c. An individual health insurance policy shall provide coverage of the cost of treatment related to cochlear implants, including procedures for the implantation of cochlear devices and costs for any parts, attachments, or accessories of the device.

d. The benefits shall be provided to the same extent as for any other condition under the policy.

e. This section shall apply to those policies in which the insurer has reserved the right to change the premium.

(cf: P.L.2008, c.126, s.5)

5. Section 6 of P.L.2008, c.126 (C.17B:27-46.1gg) is amended to read as follows:

6. a. A group health insurance policy that provides hospital and medical expense benefits and is delivered, issued, executed or renewed in this State pursuant to chapter 27 of Title 17B of the New Jersey Statutes, or approved for issuance or renewal in this State by the Commissioner of Banking and Insurance, on or after the effective date of this act, shall provide coverage for medically necessary expenses incurred in the purchase of a hearing aid or cochlear implant for a covered person [15] 21 years of age or younger, as provided in this section.

c. A group health insurance policy shall provide coverage of the cost of treatment related to cochlear implants, including procedures for the implantation of cochlear devices and costs for any parts, attachments, or accessories of the device.

d. The benefits shall be provided to the same extent as for any other condition under the policy.

e. This section shall apply to those policies in which the insurer has reserved the right to change the premium.

(cf: P.L.2008, c.126, s.6)

6. Section 7 of P.L.2008, c.126 (C.17B:27A-7.14) is amended to read as follows:

7. a. An individual health benefits plan that provides hospital and medical expense benefits and is delivered, issued, executed or renewed in this State pursuant to P.L.1992, c.161 (C.17B:27A-2 et al.), on or after the effective date of this act, shall provide coverage for medically necessary expenses incurred in the purchase of a hearing aid or cochlear implant for a covered person [15] 21 years of age or younger, as provided in this section.

b. A health benefits plan shall provide coverage that includes the purchase of a hearing aid for each ear, when medically necessary and as prescribed or recommended by a licensed physician or audiologist. [A carrier may limit the benefit provided in this section to $1,000 per hearing aid for each hearing-impaired ear every 24 months. A covered person may choose a hearing aid that is priced higher than the benefit payable under this section and may pay the difference between the price of the hearing aid and the benefit payable under this section, without financial or contractual penalty to the provider of the hearing aid.]A carrier may limit the benefit provided in this section to one hearing aid for each hearing-impaired ear every 24 months.

c. An individual health benefits plan shall provide coverage of the cost of treatment related to cochlear implants, including procedures for the implantation of cochlear devices and costs for any parts, attachments, or accessories of the device.

d. The benefits shall be provided to the same extent as for any other condition under the health benefits plan.

e. This section shall apply to those health benefits plans in which the carrier has reserved the right to change the premium.

(cf: P.L.2008, c.126, s.7)

7. Section 8 of P.L.2008, c.126 (C.17B:27A-19.18) is amended to read as follows:

8. a. A small employer health benefits plan that provides hospital and medical expense benefits and is delivered, issued, executed or renewed in this State pursuant to P.L.1992, c.162 (C.17B:27A-17 et seq.), on or after the effective date of this act, shall provide coverage for medically necessary expenses incurred in the purchase of a hearing aid or cochlear implant for a covered person [15] 21 years of age or younger, as provided in this section.

c. A small employer health benefits plan shall provide coverage of the cost of treatment related to cochlear implants, including procedures for the implantation of cochlear devices and costs for any parts, attachments, or accessories of the device.

d. The benefits shall be provided to the same extent as for any other condition under the health benefits plan.

e. This section shall apply to those health benefits plans in which the carrier has reserved the right to change the premium.

(cf: P.L.2008, c.126, s.8)

8. Section 9 of P.L.2008, c.126 (C.26:2J-4.32) is amended to read as follows:

9. a. A health maintenance organization contract for health care services that is delivered, issued, executed or renewed in this State pursuant to P.L.1973, c.337 (C.26:2J-1 et seq.), or approved for issuance or renewal in this State by the Commissioner of Banking and Insurance, on or after the effective date of this act, shall provide health care services for medically necessary expenses incurred in the purchase of a hearing aid or cochlear implant for an enrollee [15] 21 years of age or younger, as provided in this section.

b. The health care services shall include the purchase of a hearing aid for each ear, when medically necessary and as prescribed or recommended by a licensed physician or audiologist. [A health maintenance organization may limit the health care services provided in this section to $1,000 per hearing aid for each hearing-impaired ear every 24 months. An enrollee may choose a hearing aid that is priced higher than the health care services payable under this section and may pay the difference between the price of the hearing aid and the health care services payable under this section, without financial or contractual penalty to the provider of the hearing aid.]A health maintenance organization may limit the health care services provided in this section to one hearing aid for each hearing-impaired ear every 24 months.

c. A health maintenance organization contract shall provide coverage of the cost of treatment related to cochlear implants, including procedures for the implantation of cochlear devices and costs for any parts, attachments, or accessories of the device.

d. The health care services shall be provided to the same extent as for any other condition under the contract.

e. This section shall apply to those contracts for health care services under which the right to change the schedule of charges for enrollee coverage is reserved.

(cf: P.L.2008, c.126, s.9)

9. Section 10 of P.L.2008, c.126 (C.52:14-17.29n) is amended to read as follows:

10. a. The State Health Benefits Commission shall, on or after the effective date of this act, provide benefits for medically necessary expenses incurred in the purchase of a hearing aid or cochlear implant for a covered person [15] 21 years of age or younger, as provided in this section.

b. The benefits shall include the purchase of a hearing aid for each ear, when medically necessary and as prescribed or recommended by a licensed physician or audiologist. [The commission may limit the benefit provided in this section to $1,000 per hearing aid for each hearing-impaired ear every 24 months. A covered person may choose a hearing aid that is priced higher than the benefit payable under this section and may pay the difference between the price of the hearing aid and the benefit payable under this section, without financial or contractual penalty to the provider of the hearing aid.]The commission may limit the benefit provided in this section to one hearing aid for each hearing-impaired ear every 24 months.

c. The benefits shall provide coverage of the cost of treatment related to cochlear implants, including procedures for the implantation of cochlear devices and costs for any parts, attachments, or accessories of the device.

(cf: P.L.2008, c.126, s.10)

10. Section 11 of P.L.2008, c.126 (C.30:4J-12.2) is amended to read as follows:

11. a. The Commissioner of Human Services shall ensure that every contract for health care services under the NJ FamilyCare Program established pursuant to sections 3 through 5 of P.L.2005, c.156 (C.30:4J-10 through C.30:4J-12), entered into on or after the effective date of this act, provides benefits for medically necessary expenses incurred in the purchase of a hearing aid or cochlear implant for a covered person [15] 21 years of age or younger, as provided in this section.

b. The benefits shall include the purchase of a hearing aid for each ear, when medically necessary and as prescribed or recommended by a licensed physician or audiologist. [The commissioner may limit the benefit provided in this section to $1,000 per hearing aid for each hearing-impaired ear every 24 months in any of the NJ FamilyCare Program plans, and may provide, when applicable, that a covered person may choose a hearing aid that is priced higher than the benefit payable under this section and may pay the difference between the price of the hearing aid and the benefit payable under this section, without financial or contractual penalty to the provider of the hearing aid.]The commissioner may limit the benefit provided in this section to one hearing aid for each hearing-impaired ear every 24 months.

(cf: P.L.2008, c.126, s.11)

11. (New section) a. The School Employees’ Health Benefits Commission shall ensure that every contract purchased by the commission on or after the effective date of this act provides benefits for medically necessary expenses incurred in the purchase of a hearing aid or cochlear implant for a covered person as provided in this section.

b. The benefits shall include the purchase of a hearing aid for each ear, when medically necessary and as prescribed or recommended by a licensed physician or audiologist.The commissioner may limit the benefit provided in this section to one hearing aid for each hearing-impaired ear every 24 months.

12. This act shall take effect on the 90th day next after the date of enactment.

STATEMENT

This bill, which amends P.L.2008, c.126, “Grace’s Law,” removes the specification that health insurers (health, hospital, and medical service corporations, commercial individual and group health insurers, health maintenance organizations, health benefits plans issued pursuant to the New Jersey Individual Health Coverage and Small Employer Health Benefits Programs, the State Health Benefits Program, and the NJ FamilyCare Program) provide coverage for expenses incurred in the purchase of a hearing aid only for covered persons who are 15 years old or younger, and providing instead that they provide coverage for those expenses for covered persons who are 21 year old or younger. The bill allows a health insurer to limit the coverage of a hearing aid to one hearing aid for each hearing-impaired ear every 24 months.

The bill also requires that benefits provide coverage of the cost of treatment related to cochlear implants, including procedures for the implantation of cochlear devices and costs for any parts, attachments, or accessories of the device.

In addition, the bill supplements P.L.2007, c.103 (C.52:14-17.46.1 et seq.) to require the School Employees’ Health Benefits Commission to ensure that every contract purchased by the commission meets the same requirements for hearing aid and cochlear implant coverage as “Grace’s Law.”