Legislative Update – June 2017

Alternative Payment Models – On May 25, 2017, the NJ Senate passed A4334 which permits health care practitioners to refer patients to a health care service in which the practitioner has a beneficial interest, provided that the referral is related to an alternative payment model. As defined in the bill, alternative payment models, operated by Medicaid, Medicare or a health insurance carrier, provide payments to health care practitioners and health care services based on their performance in meeting certain quality measures linked to patient safety and operational performance, which may include institution-specific and specialty-specific goals.

Property Tax Exemptions for Nonprofit Hospitals – On May 25, 2017, Senate Bill 3243 was introduced to restore the property tax exemption for nonprofit hospitals with for-profit medical providers onsite. The bill would require these hospitals to pay community service contributions to host municipalities and also establishes a Nonprofit Hospital Community Service Contribution Study Commission.

Licensing of Radiologist Assistants – On May 25, 2017, Senate Bill 3234 was introduced which provides for the licensing of radiologist assistants. The radiologist assistant would need to be certified and registered with the American Registry of Radiologic Technologist and credentialed to provide primary advanced-level radiology health care under the supervision of a licensed radiologist.

Out-of-Network Benefits – On June 12, 2017, State Senator Paul Sarlo introduced a bill (S3299) regarding out-of-network benefits. The bill would require providers, insurers and employers to make certain disclosures regarding out of network healthcare costs and allows the State Health Benefits Plan, which covers public workers, to negotiate directly with hospitals in certain circumstances. Another bill (S1285) related out-of-network benefits, introduced by State Senator Joe Vitale, has stalled in the Senate Budget Committee, chaired by Senator Sarlo.