SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

SENATE, No. 2535

STATE OF NEW JERSEY

DATED:  MARCH 16, 2023

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 2535 (1R).

      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.”

FISCAL IMPACT:

      The Office of Legislative Services estimates that, based on certain assumptions, requiring the State Health Benefits Program and the School Employees’ Health Benefits Program to provide healthcare coverage for hearing aids and cochlear implants for covered persons under the bill will result in an annual State expenditure increase of up to $5 million.  The OLS notes that P.L.2008, c.126, Grace’s Law, provides the same coverage for hearing aids and cochlear implants for children up to and including 15 years of age.  To the extent that the assumptions in this analysis change based on additional information, the fiscal estimate will change accordingly.