SENATE HEALTH COMMITTEE

STATEMENT TO

SENATE COMMITTEE SUBSTITUTE FOR

SENATE, No. 1915

STATE OF NEW JERSEY

DATED: JUNE 12, 1997

      The Senate Health Committee reports favorably a Senate Committee Substitute for Senate Bill No. 1915.

      This substitute provides that a dental service corporation, dental plan organization or health service corporation contract that provides for out-of-network benefits, shall provide that in the event a person covered under the contract uses an out-of-network dentist, the person may assign reimbursement for dental services directly to the dentist providing those services.

      Any dental service corporation, dental plan organization or health service corporation making a payment to a covered person, after the rights of reimbursement have been assigned to the dentist, shall be liable to the dentist for the payment, and the payment, plus interest and reasonable attorney's fees, may be recovered in a court of competent jurisdiction.

      The provisions of this substitute shall apply to all contracts in which the dental service corporation, dental plan organization or health service corporation has reserved the right to change the premium.