Updated March 9, 2023

Assembly Bill 4913 took another giant step forward today when the Assembly Financial Institutions and Insurance Committee passed the bill favorably out of committee. The bill had previously moved favorably out of the Assembly Health Committee on January 12, 2023.

Assembly Bill 4913 requires health insurance carriers to remit payment to a health care provider solely through either a check or electronic funds transfer in compliance with federal law. The bill prohibits health insurance carriers from remitting payment for a claim to a health care provider using any form of reimbursement not authorized under the bill. The bill also prohibits health insurance carriers from reimbursing covered persons using a virtual credit card (VCC), defined as a single-use credit card exclusively provided in an electronic or digital format.

More and more major medical carriers, and now PIP carriers, are paying providers with a Virtual Credit Card (VCC) printed on the Explanation of Benefits. The interchange fees can run as high as 5% for these corporate “card not present” transactions. Providers are often unaware of these high fees when accepting VCC payments, nor do they understand this method is vulnerable to fraud and creates more work for staff.

The ANJC Legislative Team led this effort, the first of several initiatives targeting the reduction of reimbursements and administrative burdens. Dr. Steven Clarke, ANJC Legislative Chairman, attended and spoke at the Statehouse in Trenton on January 12 in favor of the bill. The team has followed this closely as it unanimously passed the Assembly Health Committee and was second referenced to the Assembly Consumer Affairs Committee for additional comments. The team continued to work directly with Assemblyman Herb Conaway, Assembly Health Chair, and is grateful for his leadership and support.

The bill is moving forward toward the full New Jersey Assembly and will have to follow the same path with the Senate version of the bill.

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Dr. Steven Clarke, ANJC Legislative Chairman, attended and spoke at the Statehouse in Trenton on January 12 in favor of the bill, which can be heard here.

Testimony starts at 3:41, with Dr. Clarke’s testimony at 12:49.