New Jersey 2022-2023 Regular Session

New Jersey Assembly Bill A566

Introduced
1/11/22  

Caption

Concerns standards for non-renewal or termination of certain health care professionals from insurance carrier's provider network.

Impact

If enacted, A566 would bring significant changes to the operational landscape of managed care plans and impose stricter regulations on how insurance carriers manage their provider networks. The bill intends to offer stronger protections for health care providers, reducing the likelihood of abrupt contract terminations that can severely impact providers' practices and patient care continuity. Furthermore, by requiring a clear process for terminations, including the right for providers to appeal decisions through a hearing, it aims to uphold fairness and transparency in the industry.

Summary

Assembly Bill A566 aims to amend the standards and processes governing the non-renewal or termination of health care professionals from managed care insurance provider networks in New Jersey. The bill mandates that insurance carriers must implement a policy that requires them to provide at least 90 days' written notice before terminating a health care professional's contract. In cases where a provider has been part of the network for over five years, the carrier must provide a full year of notice and state a valid reason for termination, which must then be reviewed and validated by the state commissioner.

Contention

There may be contention surrounding A566, particularly regarding how carriers perceive the burden of these new requirements and the implications for their financial and operational flexibility. Proponents of the bill argue that protecting health care professionals against arbitrary termination serves to ensure an adequate network of care for consumers. Critics, however, may view these protections as potential constraints on carriers' abilities to manage their networks effectively, potentially complicating the termination process of underperforming providers. Moreover, defining 'good cause' for termination remains a crucial point that could lead to further debates.

Companion Bills

No companion bills found.

Previously Filed As

NJ A1509

Establishes arbitration and notification process for health insurance carriers and provider networks when dispute arises over maintaining providers as in-network.

NJ A1018

Requires health insurance carriers to provide adequate network of physicians.

NJ A3257

Prohibits health insurance carriers from making certain changes to contract with network providers during term of contract.

NJ A1503

Establishes additional health insurance carrier network adequacy standards with respect to certain physician specialists.

NJ SB26017

Concerning changes to out-of-network health-care services dispute resolution processes for health insurance carriers.

NJ S1032

Establishes additional health insurance carrier network adequacy standards with respect to certain physician specialists.

NJ S3713

Prohibits health insurance carriers from making certain changes to contract with network providers during term of contract.

NJ A1142

Expands requirements for health insurance carriers concerning prostate cancer screening. *

NJ A5237

Requires DOBI to monitor, evaluate, and submit annual report concerning mental health insurance coverage for minors; requires carriers to maintain provider directory.

NJ A1356

Requires health benefits plans and carriers to meet certain requirements concerning network adequacy and mental health care.

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