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Bill

A 5188

Requires motor vehicle lease contracts to include provisions related to the accumulation of mileage

2025 Regular Session Introduced by Misha Novakhov

Requires electronic funds transfer (EFT) for health-plan reimbursements in New Jersey, with fee notices and EFT setup guidance; DBI enforcement and penalties for noncompliance.

REFERRED TO CONSUMER AFFAIRS AND PROTECTION
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Bill Summary · A 5188

Overview

Bill A 5188, introduced January 16, 2025, concerns reimbursement payments for health insurance costs and requires electronic funds transfer (EFT) as a method for reimbursements. The introduced text appears to address health benefits plans rather than motor vehicle leases (the titled topic in the header seems inconsistent with the bill’s actual content). The bill is currently REFERRED TO CONSUMER AFFAIRS AND PROTECTION in the New Jersey Assembly.

Key sponsor: Michael Novakhov (primary). Related companion: S 3996. A related prior-session bill is A 7297.

What the bill would do (key provisions)

  • EFT as a reimbursement method
    • A carrier or the carrier’s contracted vendor must allow reimbursement to a covered person through an electronic funds transfer.
  • Notice requirements within health benefits plans
    • Carriers must notify covered persons if an EFT reimbursement carries a fee.
    • Carriers must provide instructions (via their website or the vendor’s website) showing how to select EFT as the reimbursement method.
  • Enforcement and remedies
    • The Department of Banking and Insurance would enforce the act.
    • Procedures include providing the carrier with notice and an opportunity to be heard.
    • On a finding of violation, the department may impose civil penalties under the Penalty Enforcement Law of 1999 and order the carrier to reimburse any documented fees or charges incurred due to the violation.
  • Scope and definitions
    • “Carrier” includes insurers, health service corporations, hospital service corporations, medical service corporations, HMOs, and dental plans authorized to issue health or dental benefits in New Jersey.
    • “Covered person” means a person for whom the carrier is obligated to pay benefits or provide services under the health benefits plan.
    • “Health benefits plan” covers plans delivering hospital/medical expense benefits delivered or issued in New Jersey, with specified exclusions.
    • Exclusions include accident-only, credit, disability, long-term care, Medicare-related plans, Medicaid, CHAMPUS/Tricare, workers’ compensation, automobile medical payment insurance, and PIP-type coverage or hospital confinement indemnity.
  • Effective date and applicability
    • The act would take effect on the 90th day after enactment.
    • It would apply to reimbursement claims under health benefits plans initiated or renewed on or after the effective date.

Who is affected

  • Carriers and their contracted vendors administering health benefits plans in New Jersey.
  • Covered persons enrolled in those health benefits plans.
  • State regulatory body: Department of Banking and Insurance (enforcement and penalties).

Procedural and timeline notes

  • Introduced: January 16, 2025.
  • Initial committee referrals: Assembly Financial Institutions and Insurance Committee; subsequently to Consumer Affairs and Protection on February 12, 2025.
  • Status: Referred; no further actions listed in the provided material.
  • Related legislation: S 3996 (companion), A 7297 (prior-session).

Potential impacts

  • Increased transparency on EFT fees for reimbursements.
  • Standardization of EFT as a reimbursement option in health plans.
  • Burden on carriers to implement notification requirements and online instructions.
  • Potential penalties for noncompliance, providing a deterrent against improper reimbursement practices.
  • Consumers may experience smoother, electronic reimbursement processes, subject to any associated EFT fees.

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

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