Today, CASE announces support for new legislation introduced in New Jersey aimed at addressing the rapidly rising health care costs burdening residents. The bill, spearheaded by Assemblywoman Verlina Reynolds-Jackson, would hold hospitals accountable for their pricing practices and ensure greater transparency for consumers, while setting cost-growth benchmarks to rein in out-of-control prices.
The rising cost of healthcare is one of the most pressing issues facing NJ residents today, and hospital affordability is the No. 1 thing affecting skyrocketing health care costs. In fact, a recent study found that approximately half a million New Jersey residents are facing medical debt, as hospital costs continue to rise faster than both incomes and the annual rate of inflation in the state. By setting cost-growth benchmarks and ensuring hospitals comply, the bill seeks to curb the rising costs that have long-burdened NJ residents.
New Jersey’s healthcare system has been plagued by opaque pricing for years. Federal law already mandates price transparency, but a review of hospitals in New Jersey showed that many are failing to comply with these regulations. The new legislation takes the necessary steps to ensure enforcement, offering consumers essential protection in a complicated and costly healthcare system.
The bill also strengthens enforcement of The New Jersey Health Care Affordability and Transparency (HART) Program, for which CASE has long advocated. However, while the program introduced important transparency and cost-growth measures, it lacked the sufficient oversight and enforcement standards required to ignite lasting change.
The new legislation will establish a corrective action plan for hospitals that fail to comply with price transparency rules or exceed cost-growth benchmarks. Hospitals failing to meet these standards will face daily fines and be barred from collecting medical debt from patients.
In addition, the bill creates a Health Care Cost Containment and Price Transparency Commission. This commission will oversee hospital compliance and work to identify the root causes of rising healthcare costs. This measure will help policymakers address the underlying factors contributing to rising medical prices and ensure that consumers are not left paying the price for hospital inefficiencies.
The policy changes outlined in this bill are long overdue. If passed, the bill will finally help curb rising costs, provide consumers with the information they need to make informed healthcare decisions, and improve healthcare affordability as a whole for New Jersey residents.
CASE urges New Jersey lawmakers to pass this bill swiftly. As healthcare costs continue to rise at unsustainable rates, it is critical to prioritize transparency and affordability to protect consumers from financial harm. This legislation is a positive step toward a fairer and more transparent healthcare system in New Jersey.
