Bill Text: NJ A4713 | 2024-2025 | Regular Session | Introduced
Bill Title: Creates Health Care Cost Containment Commission; appropriates $5 million.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced) 2024-09-12 - Introduced, Referred to Assembly Health Committee [A4713 Detail]
Download: New_Jersey-2024-A4713-Introduced.html
Sponsored by:
Assemblyman HERB CONAWAY, JR.
District 7 (Burlington)
SYNOPSIS
Creates Health Care Cost Containment Commission; appropriates $5 million.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning transparency and affordability in health care, supplementing Title 26 of the Revised Statutes, and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Commission" means the Health Care Cost Containment Commission.
"Health care facility" means a health care facility licensed by the Department of Health pursuant to P.L.1971, c.136 (C.26:2H-1 et seq.).
"Hospital" means an acute care general hospital licensed pursuant to P.L.1971, c.136 (C.26:2H-1 et seq.).
2. a. There is established the Health Care Cost Containment Commission in the Department of Health. The purpose of the commission shall be to: establish data analytics and reporting mechanisms to ensure healthcare affordability, informed policymaking and access for future generations; review health care expenditures in New Jersey; identify trends in health care cost growth and hospital price growth; identify drivers of health care cost growth including hospital price growth; establish and adopt a health care cost growth benchmark; consider factors in health care cost growth; and identify health care providers and insurance companies that exceed the health care cost growth benchmark.
b. The commission shall consist of 15 members as follows: two individuals appointed by the Governor; the Commissioner of Health or the commissioner's designee; one individual appointed by the Speaker of the General Assembly; one individual appointed by the Senate President; one individual representing the interests of local government health care purchasers, nominated by the New Jersey League of Municipalities; one individual representing the interests of local government, nominated by New Jersey Association of Counties; two individuals representing the interests of the public sector, nominated by the Coalition of Affordable Hospitals; two individuals representing the interests of private sector, nominated by the Coalition of Affordable Hospitals; three consumer advocates, nominated by the New Jersey for Health Care Coalition; one individual representing the interests of small businesses, nominated by the New Jersey Business and Industry Council; the State Comptroller, or the State Comptroller's designee; and two representatives from the Office of Health Care Affordability and Transparency.
c. Members of the commissioner shall serve five-year terms, with initial appointments varying to allow for staggered terms.
d. A vacancy in the term of a member of the commissioner shall be filled for the remainder of the term in the same manner as the original appointment.
e. Members of the commission shall be diverse and possess expertise in a subject area of health care.
f. The commission shall select a chair, convene at least quarterly, and hold at least one annual public meeting.
g. The commission shall establish goals of reducing the rate of growth in per capita total health care spending, promoting an affordable pricing environment that maintains access to high quality care, health equity, and lowering consumer spending on premiums and out-of-pocket costs.
h. The commission shall set a cost growth benchmark that may be charged by health care facilities for health care services.
3. The commission shall prepare and submit to the Governor and, to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14- 19.1), an annual report containing relevant data, a detailed list of each established health care cost growth benchmark, along with the rationale for establishing each benchmark, and policy recommendations to lower health care costs.
4. There is appropriated from the General Fund to the Department of Health such sums as may be necessary to effectuate the purposes of this act, but not to exceed $5,000,000, as shall be determined by the Commissioner of Health.
5. The Commissioner of Health shall adopt rules and regulations, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), as are necessary to effectuate the provisions of this act.
6. This act shall take effect 180 days following the date of enactment.
STATEMENT
This bill creates the Health Care Cost Containment Commission (commission) in the Department of Health and appropriates $5 million.
Under the bill, the purpose of the commission is to: establish data analytics and reporting mechanisms to ensure healthcare affordability, informed policymaking and access for future generations; review health care expenditures in New Jersey; identify trends in health care cost growth and hospital price growth; identify drivers of health care cost growth including hospital price growth; establish and adopt a health care cost growth benchmark; consider factors in health care cost growth; and identify health care providers and insurance companies that exceed the health care cost growth benchmark.
The commission is to consist of 15 members as provided for in the bill, and is to set a cost growth benchmark that may be charged by health care facilities for health care services. In addition, the commission is to establish goals of reducing the rate of growth in per capita total health care spending, promoting an affordable pricing environment that maintains access to high quality care, health equity, and lowering consumer spending on premiums and out-of-pocket costs.
The bill appropriates from the General Fund to the Department of Health such sums as may be necessary to effectuate the purposes of this bill, but not to exceed $5 million.
