Assignment of Benefits Bill Signed into Law
MSNJ has learned that Acting Governor Stephen M. Sweeney signed S114 into law this past Saturday. The law will take effect in 12 months.
Under the new law, when a patient assigns their benefits under a health insurance policy to a healthcare provider, their insurer must honor that request. The insurer may opt to issue a check jointly payable to the healthcare provider and patient, however the check must physically be sent to the provider of services.
This law remedies years of frustration where a provider of medical services who is out of network with a patient’s insurance company would see payments go directly to patient, leaving the provider to collect the fee. The cost to collect would reduce the provider’s income and in some instances the provider would never be paid.
The Medical Society of New Jersey partnered with many medical specialty societies to move this bill through the Legislature. This bill represents two years of advocacy on behalf of physicians.