This bill mandates that contracts between participating health care providers and carriers, including the State Medicaid program and the FamilyCare Health Coverage Program, must include a provision requiring the carrier to notify the provider at least six months in advance of any policy changes that could lead to the denial of coverage for services rendered to covered individuals. This requirement aims to enhance communication and transparency between health care providers and insurance carriers, ensuring that providers are adequately informed of potential changes that may affect their services.
The bill defines "carrier" to encompass various entities authorized to issue health benefits plans in New Jersey, including insurance companies, health service corporations, hospital service corporations, medical service corporations, health maintenance organizations, as well as the State Health Benefits Program and the School Employees' Health Benefits Program. The act is set to take effect 120 days after its enactment and will apply to contracts that are entered into or renewed after that date.