New Jersey bans dental provider contract leasing: 5 things to know


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New Jersey Gov. Phil Murphy signed a bill earlier this month that restricts dental insurers to sell or lease access to dental provider networks, according to the Parsippany Focus.

Here are five things to know:

1. Networking leasing is when a preferred provider organization leases its dental network from other payers. In return, dentists from the PPO are considered in-network for the insurers that hold the lease agreement.

2. Previously, dentists had to automatically accept the insurer's patients and terms without agreeing to them. As a result, patients could see higher costs. This practice can also create network instability and confusion as well as loss of business for dental care providers.

3. Delta Dental of New Jersey, the New Jersey Dental Association and American Dental Association were all in support of banning contract leasing.

4. Under the new bill, insurers must know inform dentists of the network leasing agreements. Dentists can then choose to sign the contract or opt out of existing contracts.

5. New Jersey became the 16th state to stop the creation of "silent PPOs."

“Delta Dental of New Jersey is proud that we directly contract with all our participating dentists and have never leased our network of dentists from another company,” said Keith Libou, DDS, chief clinical officer for Delta Dental of New Jersey and Delta Dental of Connecticut, reports the Parsippany Focus. “Most major dental insurance carriers in New Jersey patch together their network of dentists by 'leasing' access to the networks of other companies. This important legislation will minimize confusion for both dentists and patients and ensure that contracts and costs for services are clear, transparent and fair.”

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