The proposed bill, known as the Transparency for Dental Health Care Costs Act, mandates that dental insurance carriers in New Jersey file an annual dental loss ratio report with the Commissioner of Banking and Insurance. This report must be organized by market and product type and include data such as the number of covered persons, plan cost-sharing, and annual maximum coverage limits, mirroring the requirements of the federal Medical Loss Ratio Annual Reporting Form (CMS-10418). The Commissioner is required to make this information publicly available in a searchable format, allowing for comparisons of dental loss ratios among carriers.

Additionally, the bill establishes minimum dental loss ratio thresholds that carriers must meet: 85% for large group dental plans and 83% for individual and small group plans. If a carrier fails to meet these thresholds, they are required to issue rebates to policyholders. The Commissioner will also aggregate and analyze dental loss ratios across carriers and market segments, taking enforcement actions against those that consistently report below average ratios. Enhanced reporting requirements may be imposed on carriers that remain outliers for two consecutive years. Overall, the bill aims to enhance transparency and accountability in dental insurance expenditures.