ASSEMBLY, No. 2481

STATE OF NEW JERSEY

221st LEGISLATURE

PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION

Sponsored by:

Assemblywoman  ANNETTE QUIJANO

District 20 (Union)

Assemblywoman  ROSAURA "ROSY" BAGOLIE

District 27 (Essex and Passaic)

Assemblyman  WILLIAM B. SAMPSON, IV

District 31 (Hudson)

Co-Sponsored by:

Assemblyman Danielsen

SYNOPSIS

     Prohibits insurers, SHBP, and SEHBP from charging fee for paper bills and notices.

CURRENT VERSION OF TEXT

     As reported by the Assembly Financial Institutions and Insurance Committee with technical review.

An Act concerning insurance billing practices and supplementing various parts of the statutory law.

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

     1.    a.  As used in this section:

     "Commissioner" means the Commissioner of Banking and Insurance.

     "Insurer" means:

     (1)   Any corporation, association, partnership, reciprocal exchange, interinsurer, Lloyd's insurer, fraternal benefit society, or other person engaged in the business of insurance pursuant to Subtitle 3 of Title 17 of the Revised Statutes or Subtitle 3 of Title 17B of the New Jersey Statutes;

     (2)   Any medical service corporation operating pursuant to P.L.1940, c.74 (C.17:48A-1 et seq.);

     (3)   Any hospital service corporation operating pursuant to P.L.1938, c.366 (C.17:48-1 et seq.);

     (4)   Any health service corporation operating pursuant to P.L.1985, c.236 (C.17:48E-1 et seq.);

     (5)   Any health maintenance organization established pursuant to the provisions of P.L.1973, c.337 (C.26:2J-1 et seq.);

     (6)   Any insurance plan operating pursuant to P.L.1970, c.215 (C.17:29D-1);

     (7)   The New Jersey Insurance Underwriting Association operating pursuant to P.L.1968, c.129 (C.17:37A-1 et seq.).

     b.    No insurer shall charge a fee to furnish tangible printed or paper bills or notices, with respect to any insurance policy, to an insured or other owner of that policy.

     c.     If the commissioner finds, after notice and hearing, that an insurer has a pattern and practice of charging a fee prohibited by this section, the commissioner may, after notice and hearing, order the payment of a penalty not to exceed $1,000 for each offense. Each instance of a fee prohibited by this section that is charged to an insured or other owner of that policy shall be a separate offense and subject to assessment of a separate penalty. Penalties assessed pursuant to this section shall be collected by the commissioner pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).

     d.    Nothing in this section shall prohibit an insurer from offering a discount, credit or other incentive to an insured for selecting a specific billing, payment or notification option.
     2.    The State Health Benefits Commission shall not charge a fee to furnish tangible printed or paper bills or notices, with respect to any health plan included in the State Health Benefits Program to any member of the State Health Benefits Program.

     3.    The School Employees’ Health Benefits Commission shall not charge a fee to furnish tangible printed or paper bills or notices, with respect to any health plan included in the School Employees’ Health Benefits Program to any member of the School Employees’ Health Benefits Program.

     4.    This act shall take effect on the 90^th day next following enactment.