This bill requires private health insurers and state health programs, including the State Health Benefits Program (SHBP), School Employees Health Benefits Program (SEHBP), Medicaid, and NJ FamilyCare, to provide coverage for wigs under specific medical circumstances. Coverage is mandated when a wig is prescribed by a licensed dermatologist, oncologist, or attending physician, and when its medical necessity is certified as part of the treatment for a diagnosed illness, chronic medical condition, or injury. The bill allows for coverage of a new wig no more frequently than once every 36 months and stipulates that expenses for wigs must be treated like any other durable medical equipment.

Furthermore, the bill explicitly prohibits health insurers from restricting wig coverage solely to individuals undergoing chemotherapy for cancer, thereby broadening access for those experiencing hair loss due to various medical conditions. It also includes definitions for "durable medical equipment" and "wig," clarifying that wigs are considered cranial prostheses for medical purposes. The Commissioner of Human Services is tasked with establishing payment amounts and coverage frequency for Medicaid and NJ FamilyCare enrollees, ensuring that state coverage aligns with similar federal proposals pending in Congress that aim to classify wigs as durable medical equipment under Medicare.