2025 was another busy year for the New Jersey legislature in proposing and finalizing bills impacting health care. In this multipart update, we discuss the new bills and their impact on the healthcare industry in New Jersey.
Dispensing Hearing Aids
On March 6, 2025, the New Jersey legislature approved Bill A4091, amending P.L.1983, c.420 (N.J.S.A. §§ 45:3B-1 et seq. and N.J.S.A. § 45:9A-2), which expands services that can be provided by audiologists and hearing aid dispensers. Specifically, the bill permits licensed audiologists to select, prescribe, order, dispense, and fit hearing aids if the licensee has successfully completed a program of coursework and clinical training from an accredited institution in areas that meet the requirements established by the Audiology and Speech-Language Pathology Advisory Committee .
The Bill took effect on March 6, 2025. The full text of the bill can be found here.
Transfers of Prescriptions for Attention Deficit
On April 22, 2025, the New Jersey legislature approved Bill S3388, amending P.L.2003, c.280 (N.J.S.A. § 45:14-58), which allows pharmacists to transfer Schedule II attention-deficit/hyperactivity disorder prescriptions. The bill expands allowable transfers between pharmacists to include Schedule II controlled dangerous substance prescriptions and explicitly permits such transfer for attention-deficit/hyperactivity disorder prescriptions. The bill is intended to alleviate the difficulties faced by patients when attempting to fill these prescriptions during a drug shortage, and also to comply with similar recent federal rule changes.
The Bill took effect on June 21, 2025. The full text of the bill can be found here.
Creation of Public Health Institute
On April 22, 2025, the New Jersey legislature approved Bill S3562, published as P.L.2025, c.46 (codified at N.J.S.A. §§ 26:2ff-1 et seq.), which provides for designation and establishment of a Public Health Institute (the Institute) in New Jersey. The Institute was established in light of the COVID-19 pandemic to ensure a coordinated, resilient response to any public health emergency by public healthcare officials and providers. to. Among other things, the Institute would help address root causes of health disparities and create a more stable, robust public health infrastructure. The bill also creates the Public Health Institute Fund within the Department of Health to support and fund the establishment and maintenance of the Institute.
The Bill took effect on April 22, 2025. The full text of the bill can be found here.
Biomarker Precision Medical Testing
On April 23, 2025, the New Jersey legislature approved Bill A4163, published as P.L.2025, c.49 (codified at N.J.S.A. §§ 17:48-6zz et seq.), which requires health insurers to provide coverage for biomarker precision medical testing. Under the bill, Biomarker precision medical testing is defined as “the analysis of tissue, blood, or other biospecimen for the presence of a biomarker. Biomarker precision medical testing includes, but is not limited to, single-analyte tests, multiplex panel tests, protein expression, and whole exome, whole genome, and whole transcriptome sequencing.” Specifically, the bill requires that each hospital service corporation contract that provides hospital or medical expense benefits pursuant to P.L.1938, c.366 (C.17:48-1 et seq.) or is approved for issuance or renewal in New Jersey by the Commissioner of Banking and Insurance on or after the effective date of the bill, shall provide coverage for biomarker precision medical testing.
The Bill took effect on July 22, 2025. The full text of the bill can be found here.
Step Therapy Protocol
On May 8, 2025, the New Jersey legislature approved Bill A1825, published as P.L.2025, c.50 (codified at N.J.S.A. §§ 30:4D-7uu et seq. and N.J.S.A. §§ 52:14-17.28h et seq), which establishes certain guidelines for the New Jersey State Health Benefits Program (SHBP), the School Employers Health Benefits Program (SEHBP), and Medicaid concerning step therapy protocols. The bill requires such programs to base step therapy protocols on clinical practice guidelines that are developed by the Division of Medical Assistance and Health Services in the Department of Human Services or by a managed care organization, and that meet the requirements of the bill. Additionally, the bill requires that patients be exempt from step therapy protocols when those protocols are inappropriate or otherwise not in the best interest of the patients, and that patients have access to a fair, transparent, and independent process for requesting an exception to a step therapy protocol when the patient’s physician deems it appropriate.
The Bill took effect on January 1, 2026. The full text of the bill can be found here.
Social Work Licensure Compact
On May 8, 2025, the New Jersey legislature approved Bill A2813, published as P.L. 2025, c.51 (codified at N.J.S.A § 45:15BB-14). Through the bill, New Jersey officially joins the Social Work Licensure Compact (the Compact), a multistate licensing system allowing a social worker licensed at the clinical, master’s, or bachelor’s level to obtain licensure in just one participating state and practice in other member states, provided the individual meets the requirements established by the Compact. The bill aims to address New Jersey’s shortage of health care workers, which is especially critical in the area of mental health, and provides access to licensing barriers for social workers who can provide care across state lines.
The bill sets requirements for social workers to obtain a multistate license, including having an active, unrestricted license in their home state; passing a national qualifying exam; and meeting specified education and practice criteria.
It also creates a Social Work Licensure Compact Commission to manage the Compact. The commission will handle rulemaking, oversee finances, and coordinate enforcement actions. It will also have authority to discipline multistate licensees and conduct joint investigations across participating states.
The Bill took effect on May 8, 2025. The full text of the bill can be found here.
Cooperative Sober Living Residences and Boarding Houses
On June 3, 2025, the New Jersey legislature approved Bill A4535, amending the Rooming and Boarding House Act of 1979 (N.J.S.A. § 55:13B-1 et seq.), to strengthen the state’s regulation of cooperative sober living residences and boarding houses. The bill defines a “cooperative sober living residence” as a boarding house that provides housing for individuals recovering from addiction. It raises the maximum civil penalty for licensing violations from $5,000 to $25,000 and requires the Department of Community Affairs (DCA) to maintain a publicly available list of licensed residences, including their locations and contact details. The bill also mandates two unannounced inspections each year to ensure compliance with standards.
Additionally, the bill requires facilities to immediately report incidents that could threaten the health, safety, or welfare of residents or staff, followed by a written report within five working days. The commissioner of community affairs, working with health and human services officials, must adopt regulations requiring certain staff qualifications, prohibiting substance use, implementing random drug testing, and offering counseling and group recovery sessions to strengthen safety and recovery support in these residences. The bill also appropriates $100,000 to the DCA to implement its requirements.
The Bill took effect on October 1, 2025. The full text of the bill can be found here.
Payor Appeals
On June 30, 2025, the New Jersey legislature approved Bill A5810, which amends P.L.1997, c.192 (N.J.S.A. § 26:2S-11), and eliminates fees to appeal certain decisions by health insurance carriers pursuant to the Independent Health Care Appeals Program (the Program). The Program allows patients or health care providers to request an independent review of an insurer’s decision to deny, reduce, or terminate benefits after internal appeals are completed. It also permits patients to authorize providers to appeal on their behalf and requires providers to notify patients when an appeal is filed. Notably, the bill removes the financial barrier for patients to challenge insurance company denials of services by eliminating the $25 application processing fee.
The Bill was effective on June 30, 2025. The full text of the bill can be found here.
Facility Assessments
On June 30, 2025, the Healthcare Finance Enhancement Act was approved by the New Jersey legislature, under Bill A5809. The bill amends P.L.1971, c.136 (N.J.S.A. § 26:2H-12), and P.L.1992, c.160 (N.J.S.A. § 26:2H-18.57), concerning ambulatory care facility assessments and hospital admission charges.
The bill creates a centralized discharge planning system for healthcare facilities, prohibiting the discharge of patients against their will if they are not receiving state or federal assistance, and requiring facilities to maintain a uniform cost accounting and reporting system. It also requires the Department of Health to post residential healthcare facility inspection reports, including serious violations, within 72 hours and allows facility licenses to be amended to reduce bed capacity based on actual use.
The bill also updates hospital and ambulatory care facility assessments. It increases the hospital per-adjusted-admission fee from $10 to $12.50 beginning July 1, 2025; creates the Safety Net Graduate Medical Education funding pool for hospitals with high Medicaid participation; and establishes a gross receipts assessment for ambulatory care facilities, starting at 3.5 percent and decreasing to 2.5 percent by FY 2026. Facilities must submit annual reports on visits and revenue, with penalties for underreporting. Revenues are deposited into the Health Care Subsidy Fund to support health services in the state.
The Bill took effect on June 30, 2025. The full text of the bill can be found here.