SENATE HEALTH COMMITTEE

STATEMENT TO

SENATE, No. 48

with committee amendments

STATE OF NEW JERSEY

DATED: FEBRUARY 22, 1996

      The Senate Health Committee reports favorably Senate Bill No. 48 with committee amendments.

      As amended by committee, this bill requires hospital service, medical service and health service corporations, commercial health insurers, health maintenance organizations (HMO's), dental plan organizations and dental service corporations to demonstrate that they will adopt and implement demonstration standards established by the Commissioner of Insurance to receive, transmit and store medical and health care claim information electronically.

      The Commissioner of Insurance, in consultation with the Healthcare Information Electronic Data Interchange Policy Council established pursuant to Senate, No. 50 or Assembly, No. 1476 of 1996, shall establish these demonstration standards, along with a timetable for adoption and implementation. The bill authorizes the commissioner to grant extensions or waivers of the implementation requirement when it is demonstrated to his satisfaction that compliance with the timetable for implementation will result in an undue hardship to a carrier or its covered individuals or enrollees.

      The bill directs the commissioner, in establishing the standards, to:

      (1) Encourage the use of the electronic data interchange (EDI) network developed by the council pursuant to Senate, No. 50 or Assembly, No. 1476 of 1996;

      (2) Encourage carriers to issue magnetic stripe "smart cards," or similar type patient identification cards or systems to covered individuals; and

      (3) Encourage and facilitate the development of privately owned and operated open networks which are interconnected and available to all participants in the health care services delivery process.

      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 committee amended this bill to include dental plan organizations and dental service corporations under the requirements of the bill.