Bill increasing scrutiny of state health benefit spending becomes law

Bill increasing scrutiny of state health benefit spending becomes law

TRENTON, N.J. – Legislation requiring reviews of medical claims within the state and school employees’ health benefits plans has been signed into law.

Harold J. Wirths

Sen. Steven Oroho and Assemblyman Hal Wirths are sponsors of the bill (S3042/A4619) to increase oversight and save taxpayer money in the state’s two largest benefit plans, for state employees and teachers. The new law requires the state to contract with a third party to monitor claims.

“Utilizing a third-party audit system to bring clarity to the way the state processes insurance claims is a commonsense, cost-saving move. This law will also help taxpayers, by ensuring the state doesn’t overpay on claims,” said Oroho (R-Sussex). “Gaining access to a real-time audit of billions of dollars in claims is a critical component of our bipartisan plan to get New Jersey’s finances back on track. I hope we can continue to work together to advance the rest of our fiscal reforms.”

The new law also creates subaccounts in the benefits programs to better track expenditures and ensure payments reflect actual costs.

“Greater oversite of these mammoth plans could reap millions of dollars in savings for the taxpayers in our state,” said Wirths (R-Sussex). “This is a step toward the thorough overhaul necessary to reign in skyrocketing benefit costs without compromising health care for employees who earned the coverage for their families. This bill promising some relief for taxpayers is a stark contrast to the record $38 billion budget the governor signed on the same day.”

Assemblyman Parker Space (R-Sussex) is a co-sponsor of the bill.