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Bill

A 4713

Creates Health Care Cost Containment Commission; appropriates $5 million.

2024-2025 Regular Session Introduced by Linda Carter and 1 co-sponsor

Creates a Health Care Cost Containment Commission to set a cost-growth benchmark, monitor expenditures, report annually, and guide policy to reduce New Jersey health costs.

Introduced in the Assembly, Referred to Assembly Health Committee
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Bill Summary · A 4713

Summary of Assembly Bill A 4713 (Health Care Cost Containment Commission)

Purpose and Intent

  • Establishes the Health Care Cost Containment Commission within the Department of Health.
  • Aims to improve transparency, affordability, and access to high-quality health care in New Jersey.
  • Key objectives include data analytics and reporting on health care cost growth, identifying drivers (including hospital price growth), and establishing a cost growth benchmark for health care services.

Key Provisions

  • Commission Establishment and Duties

    • Creates the Health Care Cost Containment Commission to develop data analytics, monitor health care expenditures, identify trends and drivers of cost growth, establish and adopt a health care cost growth benchmark, and identify entities that exceed the benchmark.
    • The commission will prepare policy recommendations to lower health care costs and promote affordability.

  • Benchmark and Pricing

    • The commission is empowered to set a cost growth benchmark that may be charged by health care facilities for services.
    • Goals include reducing per capita health care spending growth, maintaining access to high-quality care, advancing health equity, and lowering premiums and out-of-pocket costs.

  • Reporting

    • Requires an annual report to the Governor and the Legislature detailing data, each benchmark and its rationale, and policy recommendations to reduce costs.

Commission Composition and Governance

  • Membership (15 total), with appointments by various state leaders and stakeholder groups:

    • Two Governor-appointed members
    • Commissioner of Health (or designee)
    • One member appointed by the Assembly Speaker
    • One member appointed by the Senate President
    • Representatives from local government health care purchasers and local government (nominated by the NJ League of Municipalities and the NJ Association of Counties)
    • Public sector and private sector representatives (nominated through the Coalition of Affordable Hospitals)
    • Three consumer advocates (nominated by the NJ for Health Care Coalition)
    • One small business representative (nominated by the NJ Business and Industry Council)
    • The State Comptroller (or designee)
    • Two representatives from the Office of Health Care Affordability and Transparency

  • Terms and Operation

    • Members serve five-year terms with staggered starting appointments.
    • Vacancies filled in the same manner as initial appointments.
    • Members must be diverse and possess health care expertise.
    • The commission selects a chair, must meet at least quarterly, and hold at least one annual public meeting.

Budget and Implementation

  • Appropriation: Transfers up to $5 million from the General Fund to the Department of Health to implement the act.
  • Rules and Regulation: The Commissioner of Health may adopt rules under the Administrative Procedure Act as needed.
  • Effective Date: Provisions take effect 180 days after enactment.

Impact and Stakeholders

  • Affects health care facilities, insurers, and health care purchasers by establishing a cost growth benchmark and requiring monitoring and reporting.
  • Prompts enhanced transparency around health care costs and potential policy interventions to curb cost growth.
  • Involves a broad set of stakeholders, including government entities, consumer advocates, local government, private sector groups, and health care providers.

Legislative Context

  • Introduced in the Assembly on February 4, 2025; referred to Assembly Health Committee.
  • Related/companion bills include S 6200 and several Assembly and Senate counterparts. Companion and related bills suggest ongoing interest in health care affordability and cost containment.

Compiled from official sources — confirm details with the bill’s official record.

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