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, including limitations on their investment of assets and surplus.

The new provision states that nothing in the existing law will prevent a dental service corporation from becoming a subsidiary of a nonprofit holding company or other nonprofit parent that is not a dental service corporation, as long as the subsidiary continues to comply with the "Dental Service Corporation Act of 1968." This change aims to enhance competition in the dental service market by providing nonprofit parents with greater flexibility in managing funds, ultimately benefiting the dental service corporations and their patients. The bill is set to take effect six months after its enactment.

Statutes affected:
Introduced: 17:48C-4