FISCAL NOTE TO

SENATE, No. 945

STATE OF NEW JERSEY

DATED: JANUARY 17, 1997

      Bill Summary:

      Senate Bill No. 945 of 1996 requires that managed care health benefits plans be certified by the Commissioner of Health and Senior Services (DHSS) in order to operate or provide health benefits in the State. To receive certification a managed care health benefits plan must meet various standards and requirements specified in the legislation.

      DHSS shall establish uniform application and renewal fees for the certificate which cannot exceed DHSS' costs to administer the program. In addition, the bill imposes a penalty for violations of the bill of between $250 and $10,000 for each day the violation continues and increases the penalties in the law governing health maintenance organizations, N.J.S.A. 26:2J-1 et seq., to these amounts.

      Agency Comments:

      DHSS and the Office of Management and Budget (OMB) have estimated the cost of the legislation at $824,000, $737,000 and $768,000, respectively, in each of the next three fiscal years, primarily for costs associated with 11 employees. DHSS and OMB do not identify any program fees or revenue.

      Office of Legislative Services Comments:

      There is no State cost associated with the legislation as DHSS is able to establish uniform application and renewal fees for the certificate. It is assumed that the fees established by DHSS will be sufficient to cover the program's actual costs. DHSS may also be able to obtain federal Medicare and Medicaid reimbursement for costs attributable to the Medicare and Medicaid programs.

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