New Jersey and Oregon Target Behavioral Health Reform and Patient Protections
Over the past month, New Jersey and Oregon enacted legislation to protect the quality and access of mental and behavioral health services.
Oregon's Comprehensive Behavioral Health Investment
A more robust effort in Oregon to reform how behavioral healthcare is delivered, Governor Tina Kotek (D) signed a multitude of bills into law that are packaged as a reform effort to address the state’s behavioral health crisis. Notably seeking to address the behavioral health workforce, standards for civil commitment, and access to services for substance use prevention services for youth. As it stands, the following bills were signed into law:
HB 2059: Establishes the Residential Behavioral Health Capacity Program, which appropriates and authorizes $65.7 million to be distributed to behavioral health providers with capacity shortfalls.
HB 2024: Requires the Oregon Health Authority to establish a statewide grant program to recruit and retain workforce in the behavioral health space.
HB 2005: Broadens the standards for what may constitute civil commitment and authorizes the judicial branch to consider past or future behavior in a civil commitment hearing.
HB 3321: Requires the Alcohol and Drug Policy Commission to create a statewide strategy for youth substance use prevention.
New Jersey Cracks Down on Treatment Provider Fraud
At the same time as Oregon seeks to invest in the behavioral health workforce, New Jersey enacted legislation this past month that seeks to protect patients from bad actors and ensure they receive quality care from qualified providers in the state. For instance, A.3974/S.3952 was signed into law recently, which reclassifies patient brokering (i.e., the practice of receiving financial incentives in exchange for referring patients to specific treatment centers or facilities) as a third-degree crime, imposes a $50,000 penalty that is mandatory for any violation, and requires restitution for impacted patients or insurers. Notably, the bill also establishes clarification that the law applies to both for-profit and not-for-profit health care facilities, inclusive of recovery residences. These elements were inspired by a report from the State of New Jersey Commission of Investigation.
Additionally, New Jersey enacted A.3973/S.3952, which prohibits the use of deceptive marketing practices by addiction treatment providers. Notably, all advertising by such providers is required to be accurate, complete, and transparent about services offered, where they are being offered, and any affiliations the provider has. In recent years, other states have begun their processes for auditing and reviewing existing providers’ advertising and marketing tactics in this space, and it’s likely that similar legislation could be introduced elsewhere in 2026.
Track Health Care Policy
The ever-evolving state health policy landscape will continue to influence how health care organizations make business decisions. MultiState's team pulls from decades of expertise to help you effectively navigate and engage. MultiState's team understands the issues, knows the key players and organizations, and we harness that expertise to help our clients effectively navigate and engage on their policy priorities. We offer customized strategic solutions to help you develop and execute a proactive multistate agenda focused on your company's goals. Learn more about our Health Care Policy Practice.