Bill Text: NJ A707 | 2012-2013 | Regular Session | Introduced
Bill Title: Requires health care providers to observe certain practices concerning collection of outstanding balances on patient accounts.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2012-01-10 - Introduced, Referred to Assembly Health and Senior Services Committee [A707 Detail]
Download: New_Jersey-2012-A707-Introduced.html
STATE OF NEW JERSEY
215th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2012 SESSION
Sponsored by:
Assemblyman RUBEN J. RAMOS, JR.
District 33 (Hudson)
Assemblywoman ANNETTE QUIJANO
District 20 (Union)
Assemblyman RALPH R. CAPUTO
District 28 (Essex)
SYNOPSIS
Requires health care providers to observe certain practices concerning collection of outstanding balances on patient accounts.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning patient billing by health care providers and supplementing Titles 26 and 45 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. As used in this section:
"Consumer reporting agency" means a person or entity that, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages, in whole or in part, in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties, and that uses any means or facility for the purpose of preparing or furnishing consumer reports.
"Health care facility" means a health care facility that is licensed pursuant to P.L.1971, c.136 (C.26:2H-1 et seq.).
"Outstanding balance" means an amount due and owing for a health care service that was provided to a patient by a health care facility and that is not reimbursed by any third party payer that provides health care benefits to that patient.
b. In the case of a patient to whom a health care facility submits a bill for an outstanding balance, the health care facility:
(1) shall provide prior written notification to the patient that the facility intends to refer the patient's account to a private collection agency at least 30 days prior to making that referral; and
(2) shall not communicate information about the outstanding balance on a patient's account to a consumer reporting agency until at least 45 days have elapsed since the date that the facility referred the patient's account to a private collection agency.
c. A health care facility that violates the provisions of this section shall be subject to such penalties as the Commissioner of Health and Senior Services may determine pursuant to sections 13 and 14 of P.L.1971, c.136 (C.26:2H-13 and 26:2H-14).
2. a. As used in this section:
"Consumer reporting agency" means a person or entity that, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages, in whole or in part, in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties, and that uses any means or facility for the purpose of preparing or furnishing consumer reports.
"Health care professional" means a person licensed or otherwise authorized to practice as a health care professional in this State pursuant to Title 45 of the Revised Statutes.
"Outstanding balance" means an amount due and owing for a health care service that was provided to a patient by a health care professional and that is not reimbursed by any third party payer that provides health care benefits to that patient.
b. In the case of a patient to whom a health care professional submits a bill for an outstanding balance, the health care professional:
(1) shall provide prior written notification to the patient that the health care professional intends to refer the patient's account to a private collection agency at least 30 days prior to making that referral; and
(2) shall not communicate information about the outstanding balance on a patient's account to a consumer reporting agency until at least 45 days have elapsed since the date that the health care professional referred the patient's account to a private collection agency.
c. A health care professional who violates the provisions of this section shall be subject to such penalties as the Director of the Division of Consumer Affairs in the Department of Law and Public Safety may determine pursuant to sections 9 and 12 of P.L.1978, c.73 (C.45:1-22 and 45:1-25).
3. This act shall take effect on the 90th day after enactment and shall apply to health care services provided on or after the effective date.
STATEMENT
This bill requires that a health care provider (including a health care facility or health care professional) observe certain practices in the collection of an outstanding balance on a patient account (i.e., an amount due and owing for a health care service provided to a patient and not reimbursed by a third party payer).
The bill provides specifically as follows:
· In the case of a patient to whom a health care provider submits a bill for an outstanding balance, the provider:
(1) is to provide prior written notification to the patient that the provider intends to refer the patient's account to a private collection agency at least 30 days prior to making that referral; and
(2) is not to communicate information about the outstanding balance on a patient's account to a consumer reporting agency until at least 45 days have elapsed since the date that the provider referred the patient's account to a private collection agency.
· The bill defines "consumer reporting agency" to mean a person or entity that, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages, in whole or in part, in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties, and that uses any means or facility for the purpose of preparing or furnishing consumer reports.
· A health care provider that violates the provisions of the bill is subject to such penalties as the Commissioner of Health and Senior Services or the Director of the Division of Consumer Affairs in the Department of Law and Public Safety, as applicable, may determine pursuant to statute.
· The bill takes effect on the 90th day after enactment and applies to health care services provided on or after the effective date.
