Assembly Committee Advances Legislation Mandating Detailed Medical Billing for Health Care Services

Reynolds-Jackson, DeAngelo, and Verrelli bill would enhance transparency in medical billing and improve patient understanding

(TRENTON) — Legislation that would require healthcare providers to provide more comprehensive billing statements cleared the Assembly Financial Institutions and Insurance Committee on Thursday. Bill A3860, sponsored by Assemblywoman Verlina Reynolds-Jackson and Assemblymen Wayne DeAngelo and Anthony Verrelli, seeks to increase consumer protections by ensuring patients receive detailed information about their medical expenses.

“This bill is a crucial step in ensuring that patients are fully informed about the costs of their healthcare services,” said Assemblywoman Reynolds-Jackson (D-Mercer, Hunterdon). “A3860 would provide countless New Jersey residents with access to clear and detailed billing, which is essential for protecting consumers and helping them make informed financial decisions.”

Under this legislation, a healthcare provider would be required to deliver an itemized statement outlining specific charges within 30 days of a claim being adjudicated by a carrier, or within seven days of receiving a written request. Additionally, the statements would need to be written in plain language, making it easy for the average person to understand, and would have to avoid using language such as “miscellaneous charges,” “supply charges,” and/or “other charges.” Healthcare providers would also be forbidden from using drug code numbers on billing statements without also providing the corresponding brand name or generic name for each drug code number.

In addition to providing detailed statements, healthcare providers would be required to display contact information for dispute resolution, as well as information regarding available financial assistance such as reduced-cost programs. 

“Not everyone is a doctor, and because of that, New Jersey residents shouldn’t be expected to understand the complex language that currently exists in their medical bills,” said Assemblyman DeAngelo (D-Mercer, Middlesex). “This legislation ensures that patients are empowered regarding their healthcare financial matters by providing them with access to clear, easy-to-understand information.”

“By making billing more transparent and understandable, we are helping patients avoid confusion and stress after receiving care,” said Assemblyman Verrelli (D-Mercer, Hunterdon). “This bill will go a long way in supporting patients’ well-being and trust in our healthcare system.”