New Jersey has joined 15 other states in prohibiting the sale or lease of access to certain dental provider network contracts with the passage of new legislation banning the practice.
On August 23, Gov. Phil Murphy (D) signed S2507, which was sponsored by Assemblywoman BettyLou DeCroce (R-Parsippany) and Assemblyman Joe Danielsen (D-Somerset).
Until passage of the legislation, insurers in New Jersey were not required to inform dentists when preferred provider organizations (PPOs) rented their dental networks from other carriers, a practice known as a "silent PPO." Organizations use silent PPOs to lower reimbursements by accessing the discounted rates of another insurer.
Laws that ban silent PPOs, such as the New Jersey legislation, are believed to give dental providers more control over the networks in which they participate. Once they are made aware of agreements, dentists can choose not to sign contracts or opt out of existing ones.
The law aims to prevent patients from receiving unexpected costs for dental services, helps prevent dental providers from losing business, and averts network instability.
