FISCAL NOTE TO

[First Reprint]

ASSEMBLY, No. 1476

STATE OF NEW JERSEY

DATED: JUNE 9, 1997

      Bill Summary:

      Assembly Bill No. 1476 (1R) of 1996 creates a 31 member Health Information Interchange Policy Council (council), in, but not of, the Department of Health and Senior Services (DHSS). The council shall appoint an Executive Director, while staff support is to be provided by DHSS. The council will be responsible for developing standards for an effective electronic data interchange (EDI) network for use in the health care services delivery process and coordinating the State's responsibilities to monitor the quantity and quality of health care. The council in consultation with other agencies will develop demonstration standards for the electronic processing of health care coverage claim information by health insurers and develop standard health care enrollment and claim forms.

      Department Comments:

      DHSS and the Office of Management and Budget (OMB) have estimated costs at $250,000 in the first fiscal year and between $1.65 million and $8.25 million, respectively, in each of the next two fiscal years. DHSS and OMB apparently base these estimates on the amounts anticipated to be available to the council following enactment of Assembly Bill No. 1480 of 1996 which creates the Electronic Data Interchange Technology Development Fund.

      Office of Legislative Services Comments:

      The Office of Legislative Services is not able to determine the reasonableness of the above estimates. However, as the cost associated with this legislation is to be funded from the Electronic Data Interchange Technology Development Fund (established in Assembly Bill No. 1480 of 1996), there would be no direct cost to the State as a result of this legislation if the companion legislation is enacted into law.

This fiscal note has been prepared pursuant to P.L.1980, c.67.