State Law

New Jersey Statutes-Title 26. Health and Vital Statistics

08/15/2023 New Jersey Section 26:2S-9

Contract terms concerning appropriate medical care

Anti-gag clause, Anti-retaliation, Prohibited financial incentives

See bold sections below:

The contract between a participating health care provider and a carrier which offers a managed care plan:


a. Shall state that the health care provider shall not be penalized or the contract terminated by the carrier because the health care provider acts as an advocate for the patient in seeking appropriate, medically necessary health care services;

Prohibited Financial Incentives

b. Shall not provide financial incentives to the health care provider for withholding covered health care services that are medically necessary as determined in accordance with section 6 of this act, except that nothing in this subsection shall be construed to limit the use of capitated payment arrangements between a carrier and a health care provider; and

Anti-gag Clause

c. Shall protect the ability of a health care provider to communicate openly with a patient about all appropriate diagnostic testing and treatment options.