SENATE, No. 827

STATE OF NEW JERSEY

INTRODUCED FEBRUARY 26, 1996

By Senator BUBBA

An Act concerning automobile insurance personal injury protection benefits and supplementing P.L.1972, c.70 (C.39:6A-1 et seq.).

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. No private passenger automobile insurance policy delivered, issued, executed or renewed in this State on or after the effective date of this act shall contain any provision under which medical expense benefits pursuant to subsection a. of section 4 of P.L.1972, c.70 (C.39:6A-4) are obtained through a managed care arrangement, notwithstanding the provisions of any other law, rule or regulation to the contrary. For purposes of this act, "managed care arrangement" means a health maintenance organization or preferred provider organization and may include such other arrangement as may be so designated by the commissioner.

    2. This act shall take effect immediately.

STATEMENT

    This bill prohibits private passenger automobile insurance policies from providing medical expense benefits through a managed care arrangement, such as a health maintenance organization, preferred provider organization, or other such arrangement as may be so designated by the commissioner.

Prohibits use of managed care arrangements to provide automobile insurance PIP medical expense benefits.