LEGISLATIVE FISCAL ESTIMATE

SENATE, No. 2777

STATE OF NEW JERSEY

222nd LEGISLATURE

 

DATED: OCTOBER 5, 2026

 

 

SUMMARY

 

Synopsis:

Requires automatic issuance of credential to provide services in carrier provider network for physicians in good standing in New Jersey.

Types of Impact:

Potential annual State and local government expenditure impacts and potential annual State revenue impact.

Agencies Affected:

Department of the Treasury, Department of Human Services, Department of Children and Families, and local governments.

 

 

 Office of Legislative Services Estimate

Potential Annual State Expenditure Impact

Indeterminate

Potential Annual State Revenue Impact

Indeterminate

Potential Annual Local Expenditure Impact

Indeterminate

 

·         The Office of Legislative Services (OLS) notes that the bill may potentially alter:  a) the annual expenditures of the State and local governments for employee and retiree health benefits coverage; and b) the annual State expenditures and State cost reimbursements from the federal government under NJ FamilyCare (Medicaid/Children's Health Insurance Program). 

·         The bill’s automatic provider network admittance requirement for physicians in good standing with the State Board of Medical Examiners would limit the ability of health insurance carriers to manage their provider networks for considerations such as the quality and cost-effectiveness of medical treatments dispensed.  The OLS, however, lacks the informational basis to model the effects the “any willing provider” requirement would have on health coverage-related expenditures by the State and local governments.    

 

 

BILL DESCRIPTION

 

      This bill requires health insurance carriers to automatically approve applications by physicians to join or renew membership in a carrier’s network of medical service providers if the applicant’s medical license is in good standing with the State Board of Medical Examiners.   

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS notes that the bill may potentially alter:  a) the annual expenditures of the State and local governments for employee and retiree health benefits coverage; and b) the annual State expenditures and State cost reimbursements from the federal government under NJ FamilyCare (Medicaid/Children's Health Insurance Program). 

      The bill’s automatic provider network admittance requirement for physicians in good standing with the State Board of Medical Examiners would limit the ability of health insurance carriers to manage their provider networks for considerations such as the quality and cost-effectiveness of medical treatments dispensed.  The OLS, however, lacks the informational basis to model the effects the “any willing provider” requirement would have on health coverage-related expenditures by the State and local governments.   

 

Section:

Legislative Budget and Finance Office

Analyst:

Thomas Koenig

Legislative Budget and Finance Officer

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).