In our November 9, 2021 Health Care Law Update, we noted that Governor Murphy issued a conditional veto of S2559, which would require State and private insurers in New Jersey to pay for telemedicine services at the same rate as in-person services. While Governor Murphy commended lawmakers' efforts to expand access to telemedicine and telehealth, ultimately, he did not approve the bill due to fiscal concerns. On December 21, 2021, Governor Murphy approved an amended version of the bill, which incorporates his prior recommendation that pay parity remain in place to allow policymakers enough time to revise the law as appropriate. Accordingly, the amended bill extends through December 31, 2023 pay parity for telemedicine and telehealth services that are covered by a health benefits plan if the health benefit plan covers those same services if provided in-person. In other words, pay parity is not extended to telemedicine and telehealth services if the health benefit plan does not cover the service if it were provided in-person. Pay parity also does not apply to audio-only services, except for behavioral health services.
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