Committee advances measure directing regulators to strengthen network adequacy for facility‑based specialists

The Senate Commerce Committee voted March 24 to release Senate Bill 3416, which asks the state insurance department to adopt additional network adequacy standards for certain physician specialists at in‑network facilities.

Ward Sanders of the New Jersey Association of Health Plans testified in opposition, saying New Jersey already has robust network standards and warning the bill could raise reimbursement levels and complicate cost negotiations. "We respectfully oppose this legislation," Sanders said, noting the bill may affect both commercial and Medicaid markets and could drive higher costs for payers.

Physician witnesses — including Dr. Michael Ieta, a board‑certified anesthesiologist, and Dr. Edwin Leschorn, a pathologist — testified the No Surprises Act and arbitration processes have led to carriers pushing facility‑based specialists out of network, destabilizing longstanding in‑network arrangements. Dr. Ieta said practices had received mid‑contract notices and steep proposed reductions in rates after federal changes, and that S3416 would encourage carriers to keep specialty groups in network.

Committee members questioned how state regulation would interact with federal no surprises protections and arbitration, and whether consumers still have access when a facility‑based provider is out of network. Supporters said the proposal would restore incentives for in‑network contracting and preserve patient access; opponents urged further analysis of cost impacts. After discussion, the committee released the bill for further consideration.

What’s next: S3416 was released from committee and will proceed through the legislative process; the insurance department would conduct rulemaking if the bill proceeds as drafted.