New Jersey Legislative Update

On June 1, 2023, S3905 was introduced in the New Jersey State Senate which, if passed, would establish a two-year statute of limitations for medical provider applications.

Medical provider claims are part of the New Jersey Workers’ Compensation system. Since the statute provides that employees injured in compensable accidents are entitled to medical treatment, the system recognizes the right of a medical provider rendering such treatment to file a claim against the employer if they have not been properly paid for such treatment. 

Medical provider applications are relatively new—while the New Jersey Workers’ Compensation system has existed since 1911, it was only in 2012 that the statute was amended to give the Workers’ Compensation Division exclusive jurisdiction over claims for payment by medical providers for work-related injuries. However, the amendments were silent with respect to how long medical providers have to file these applications. This led to some confusion. 

Some took the position that the two-year statute of limitations applied by the statute to injured workers also applied to medical providers. Others took the position that medical provider applications are essentially suits for breach of contract and, therefore, the medical providers should be afforded the same six-year statute of limitations allowed for such actions in New Jersey. The confusion was resolved when the Appellate Division ruled in the case of Plastic Surgery Ctr., PA v. Malouf Chevrolet-Cadillac, Inc., 457 N.J. Super. 565 (App. Div. 2019). Their ruling stated that there was nothing in the statute specifying that the two-year statute of limitations applying to injured workers also applied to medical providers and, in the absence of such language, the six-year statute of limitations for breach of contract applies. This decision was subsequently affirmed by the New Jersey Supreme Court in 2020. 

The current Bill appears to address the Appellate Division’s concern in Plastic Surgery Ctr., PA by providing explicit statutory language establishing a two-year statute of limitations beginning on the date that the employer either makes a payment or issues a denial. The language of the Bill indicates it would apply prospectively—therefore, if the Bill is signed into law, it will only impact medical provider applications for treatment rendered after it is enacted into law. Medical providers seeking payment for treatment rendered before such time will still be governed by the current six-year statute of limitations. 

As of time of writing, the proposed Bill has been referred to the Senate Labor Committee. Marshall Dennehey is monitoring the situation and will provide further updates as necessary. 

_{What’s Hot in Workers’ Comp, Vol. 27, No. 6, June 2023, is prepared by Marshall Dennehey to provide information on recent legal developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. We would be pleased to provide such legal assistance as you require on these and other subjects when called upon. ATTORNEY ADVERTISING pursuant to New York RPC 7.1 Copyright © 2023 Marshall Dennehey, all rights reserved. No part of this publication may be reprinted without the express written permission of our firm. For reprints or inquiries, or if you wish to be removed from this mailing list, contact tamontemuro@mdwcg.com.}