ASSEMBLY HEALTH COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1479

with committee amendments

STATE OF NEW JERSEY

DATED: MAY 1, 1997

      The Assembly Health Committee reports favorably and with committee amendments Assembly Bill No. 1479.

      As amended by the committee, this bill requires the Commissioner of Health and Senior Services, in conjunction with the Commissioners of Human Services, Banking and Insurance, Commerce and Economic Development, and Labor, and the Healthcare Information Electronic Data Interchange Policy Advisory Council (which would be established by Senate Bill No. 50 (2R) Aca or Assembly Bill No. 1473 Aca of 1996, which were reported by the committee on this date), to present an annual report to the Governor and the Legislature on Statewide health care expenditures. The report would be based upon a survey of health care facilities and providers, health insurers, insurers writing automobile insurance and workers' compensation coverage, business and organized labor.

      The bill further requires the Commissioner of Health and Senior Services to include in the annual report information about administrative cost savings achieved by acute care hospitals as a result of increased utilization of electronic data interchange technology. The commissioner is to determine the specific information to be included in the report in consultation with the Healthcare Information Electronic Data Interchange Policy Advisory Council. The commissioner will solicit and be entitled to receive this information from each acute care hospital as part of the survey conducted for the report.

      This bill is part of a legislative package designed to effectuate the recommendations of the Healthcare Information Networks and Technologies (HINT) report to the Legislature under the joint auspices of Thomas Edison State College and the New Jersey Institute of Technology. The bill is intended to ensure a regular and formal follow-up by State government to the Statewide health care automation and cost survey conducted for the HINT report which will enable State policy makers to be apprised of the latest developments with respect to Statewide health care expenditures and possible means to achieve cost savings.

      The committee amended the bill to:

∙    include insurers writing automobile insurance and workers compensation coverage as entities that shall be included in the department's survey, in order to gain a more complete picture of health care costs in the State;

∙    change the references to the "Healthcare Information Electronic Data Interchange Policy Council" to the "Healthcare Information Electronic Data Interchange Policy Advisory Council" (which would be established by Senate Bill No. 50 (2R) Aca or Assembly Bill No. 1473 Aca of 1996); and

∙    change the references to the "Commissioner of Health" and the "Commissioner of Insurance" to the "Commissioner of Health and Senior Services" and the "Commissioner of Banking and Insurance," respectively.

      As reported by the committee, this bill is identical to Senate Bill No. 43 (1R) Aca (Littell/LaRossa), which the committee also reported on this date.