Compared to previous years, the New Jersey Legislature passed a limited number of statutes impacting health care in 2024. It was a slow start to 2024, but activity picked up in the last six months of the calendar year. Once again, the Legislature waited until the last minute to extend parity rates for telemedicine.
More notably, in our opinion, is the passage of P.L.2024, c.87, which allows an oncology practice to integrate a pharmacy into the practice. Although this is far from allowing all provider types to integrate a pharmacy, the passage of this bill is a small but good step in the right direction in recognizing that some specialties can deliver health care more efficiently to patients by way of an integrated pharmacy.
Licensing and Teacher Training in Board of Cosmetology
On July 10, 2024, the New Jersey Legislature approved P.L.2024, c.46 (Bill A4587), which amends C.45:5B-23 and C.45:11-60 to increase the hours required for an individual to obtain licensure as a teacher in cosmetology and hairstyling or as a massage and bodywork therapist. Specifically, an individual must now complete a teacher training course consisting of 600 hours of instruction in the practice and theory of teaching, conducted at a licensed school of cosmetology and hairstyling. The prior statute did not have an hour requirement. The class study hours required for a massage and bodywork therapist increased from 500 to 600 hours.
The bill was effective immediately as of July 10, 2024. The text of the approved bill can be accessed here.
Medical Debt Is No Longer Reportable
On July 22, 2024, the New Jersey Legislature approved P.L.2024, c.48 (Bill A3861/S2806) (the Louisa Carman Medical Debt Relief Act, or the Act), which concerns the reporting and collection of medical debt. The Act prohibits medical creditors and medical debt collectors from reporting a patient’s medical debt to any consumer reporting agency for health care services performed on or after the effective date of P.L.2024, c.48 (C.56:11-56 et seq.). Additionally, consumer reporting agencies cannot make any consumer reports containing a patient’s paid medical debt or a medical debt of less than $500.
The Act also prohibits medical creditors and medical debt collectors from engaging in any collection actions until 120 days after the first bill is sent and a reasonable payment plan is offered to the patient. Additionally, the medical creditor or debt collector must provide the patient with at least one additional bill and a notice at least 30 days before taking any collection actions. The Act contains specific statements that must be in the notice. The Act also contains additional protections for patients against medical debt collectors and creditors, and sets forth penalties for violations of the Act.
Part of the Act took effect immediately, and part will take effect one year following the effective date. The text of the approved bill can be accessed here.
Amendment to the County Option Hospital Fee Program Act
On July 22, 2024, the New Jersey Legislature approved P.L.2024, c.47 (Bill A3364), which clarifies the cap on fees imposed, and modifies the definition of “participating county” under the “County Option Hospital Fee Program Act.” The bill, among other things, amends part of N.J.S.A. 30:4D-7t, which allows counties to impose a local health care-related fee on hospitals to support the Medicaid program. The amendment explains that the fee shall not exceed the aggregate amount specified in 42 C.F.R. 433.68(f)(3) minus 1% of total net patient revenues.
The bill was effective immediately as of July 22, 2024. The text of the approved bill can be accessed here.
Amending Minimum Loss Ratios for Health Benefit Plans
On September 6, 2024, the New Jersey Legislature approved P.L.2024, c.62 (Bill S2875), which makes certain changes to the calculation of minimum loss ratio requirements for health benefits plans in individual and small employer markets. The bill amends parts of N.J.S.A. 17B:27A to state that rates shall be formulated so that the anticipated minimum loss ratio for a contract or policy form shall be calculated based on a three-year rolling average. The bill amends the statute to direct the commissioner to promulgate regulations specifying the instructions and format for calculating and reporting loss ratios and issuing dividends or credits pursuant to the three-year rolling average.
The bill was effective immediately as of September 6, 2024. The text of the approved bill can be accessed here.
Expanding Criminal Background Checks
On September 12, 2024, the New Jersey Legislature approved P.L.2024, c.67 (Bill S2311), which requires a criminal history background check for individuals seeking licensure issued by boards regulating certain health care professions. The bill amends N.J.S.A. 45:1-28, the definitions relative to criminal history background checks for health care professionals, to re-define health care professionals and include licensees such as physicians, nurses, dentists, optometrists, pharmacists, chiropractors, acupuncturists, physical therapists, social workers, and more. The definition explicitly excludes from the requirement nurse aides, personal care assistants, and homemaker-home health aides, all of whom are required to undergo criminal background checks under different statutes.
The bill was effective immediately as of September 12, 2024. The text of the approved bill can be accessed here.
Codey Law Amended to Allow Oncology Practices to Integrate Pharmacies
On October 30, 2024, the New Jersey Legislature approved P.L.2024, c.87 (Bill S3242/A4447), which allows certain health care practitioner referrals to pharmacies integrated into an oncology practice. The bill prohibits practitioners from referring patients or directing an employee to refer patients to a health care service in which the practitioner, or the practitioner’s immediate family, or the practitioner in combination with the practitioner’s immediate family, has a significant beneficial interest. The bill, however, amends the exceptions to include a significant beneficial interest in a pharmacy that is integrated with an oncology practice, that only dispenses medications exclusively to patients of that practice, and that complies with the additional requirements set forth in subsection d of the bill, as long as the practitioner discloses the interest to the patient.
Subsection d states that an additional exception applies to pharmacies that are integrated with an oncology practice, provided the pharmacy: (i) has direct access to the oncology practice’s patient records; (ii) communicates with each patient in person or via telemedicine to review the prescription instructions and assesses the patient for interactions with other drugs and food; (iii) synchronously consults with the oncology practice’s treating physicians as appropriate; and (iv) complies with the requirements for timely delivery of medications, hours of operation, and recordkeeping that are established by rule or regulation by the State Board of Pharmacy.
The bill took effect immediately. The text of the approved bill can be accessed here.
Postpartum Care Requirements
On November 18, 2024, the New Jersey Legislature approved P.L.2024, c.89 (Bill S912/A3887), which establishes requirements concerning the provision of postpartum care, pregnancy loss, and stillbirth information and development of personalized postpartum care plans. Specifically, the bill requires that health care professionals who provide prenatal maternity care to a patient shall ensure that the patient has the opportunity to develop a comprehensive personalized postpartum care plan that is consistent with the patient’s anticipated postpartum needs and plans. “Health care professional” includes physicians, advanced practice nurses, certified nurse midwives, certified professional midwives, and certified midwives. The bill sets forth specific requirements for each personalized postpartum care plan. Additionally, each general hospital, ambulatory care facility, and birthing center licensed pursuant to P.L.1971, c.136 (C.26:2H-1 et seq.) that provides maternity care services shall ensure that, prior to discharge following the end of a pregnancy, pregnancy loss, or stillbirth, each patient receiving maternity care services is provided with postpartum care information based on best practices and guidance, as determined by the American College of Obstetricians and Gynecologists or other nationally recognized bodies.
The bill will take effect 180 days after the date of enactment. The text of the approved bill can be accessed here.
Expanding Pharmacy Personnel Who Can Administer Vaccines
On December 19, 2024, the New Jersey Legislature passed Bill A1899, which expands authority of pharmacy personnel to administer drugs and vaccines. Specifically, the bill amends Section 24 of P.L.2003, c.280 (C.45:14-63) so that a pharmacist, pharmacy intern, pharmacy extern, or pharmacy technician who is appropriately educated and qualified may administer drugs to a patient 18 years of age or older under any one of the following conditions: (a) pursuant to a prescription by an authorized prescriber for a vaccine and related medical emergency medications; (b) in immunization programs implemented pursuant to an authorized prescriber’s standing order for the vaccine and related medical emergency medications; or (c) in immunization programs and programs sponsored by governmental agencies that are not patient specific. The bill allows an appropriately educated and qualified pharmacist, pharmacy intern, pharmacy extern, or pharmacy technician to administer an influenza vaccine, a COVID-19 vaccine, or both, to a patient who is five years of age or older, with the permission of a parent or legal guardian of any patient under 18 years of age. The bill also allows a pharmacy intern, pharmacy extern, or pharmacy technician to administer immunizations only under the direct supervision of a licensed pharmacist.
The bill if approved by the governor will be effective immediately. The text of the passed bill can be accessed here.
Telemedicine Parity Rates Extended
On December 31, 2024, the New Jersey Legislature approved P.L.2024, c.105 (Bill A3853), which extends certain pay parity regarding telemedicine and telehealth until July 1, 2026. The bill amends Section 11 of P.L.2021, c.310, by extending its end date, thereby continuing to require health benefits plans in the state to provide coverage and payment for health care services delivered through telemedicine or telehealth at a provider reimbursement rate that equals the provider reimbursement rate applicable to services delivered through in-person contact and consultation in New Jersey. The continuing requirements do not apply to a physical health care service provided without a video component, but the reimbursement rate for a physical health care service provided through audio-only telephone conversation shall be at least 50% of the in-person rate. A behavioral health service provided without a video component shall still be reimbursed at a rate that equals the in-person rate.
The bill was effective immediately as of December 31, 2024. The text of the approved bill can be accessed here.