This bill amends current New Jersey law to allow dental service corporations to operate as subsidiaries of nonprofit parent companies. Previously, dental service corporations were restricted from such arrangements, which limited their ability to compete with larger health insurance companies. The bill maintains that these dental service corporations must still adhere to the existing statutory requirements outlined in the "Dental Service Corporation Act of 1968," including the limitations on how they can invest their funds.

The new legal language inserted into the law clarifies that dental service corporations can become subsidiaries of nonprofit holding companies or other nonprofit parents, provided they continue to comply with the relevant provisions of the existing law. This change aims to enhance competition in the dental service market by enabling these corporations to access greater financial resources through their nonprofit parent companies, ultimately benefiting patients by ensuring better service and options in dental care. The bill is set to take effect six months after its enactment.

Statutes affected:
Introduced: 17:48C-4