New Jersey ASC Association Opposes Bill to Expand State Anti-Fraud Legislation

The New Jersey Association of Ambulatory Surgery Centers is opposing A-944, a bill that would add to existing anti-fraud legislation in the state.

The bill is sponsored by Assemblywoman Celeste Riley (D) and passed out of Assembly Financial Institutions and Insurance Committee. The bill was then second referenced to the Assembly Judiciary Committee.

According to NJAASC representative Jeff Shanton, the association agrees with portions of the legislation and has cooperated with Department of Banking and Insurance efforts to eliminate the costly problem of fraud.

However, the NJAASC believes there are "troublesome" aspects to the legislation, including a provision that would incorporate the federal Anti-Kickback Statute as New Jersey law. "The AKS is a voluminous act, and complex," said Mr. Shanton. "It would drastically change the landscape, and not for the better."

The bill would allow carriers to use AKS for statutory violations, which they cannot currently do. The bill would allow the carriers to use AKS as a basis for additional private action against healthcare providers, which Mr. Shanton says is unwarranted considering "AKS is a federal law … intended for federal programs."

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