Allows reverse auctions for certain health benefits.

S3470

SENATE, No. 3470

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 12, 2026

Sponsored by:

Senator� JAMES BEACH

District 6 (Burlington and Camden)

SYNOPSIS

���� Allows reverse auctions for certain health benefits.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning reverse auctions for certain health benefits
contracts and amending P.L.1954, c.48.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1. Section 7 of P.L.1954, c.48
(C.52:34-12) is amended to read as follows:�

���� 7.��� a.� Whenever advertising
is required: (a) specifications and invitations for bids shall permit such full
and free competition as is consistent with the procurement of supplies and
services necessary to meet the requirements of the using agency and shall,
wherever practicable, include such factors as life-cycle costs, sliding
percentage preference scales, or other similar analysis as shall be deemed
effective by the Director of the Division of Purchase and Property, hereinafter
referred to as the director, (b) the advertisement for bids shall be in such
newspaper or newspapers and other medium or media selected by the State
Treasurer as will best give notice thereof to bidders and shall be sufficiently
in advance of the purchase or contract to promote competitive bidding; (c) the
advertisement shall designate the time and secure location when and where
proposals, which may be submitted in electronic or other format designated by
the director, shall be received, opened and publicly announced, the amount of the
cash or certified check, if any, which must accompany each bid, and such other
terms as the State Treasurer may deem proper; (d) notice of revisions or
addenda to advertisements or bid documents relating to bids shall be published
in a newspaper or newspapers and other medium or media selected by the State
Treasurer to give notice to bidders at least seven days, Saturdays, Sundays and
holidays excepted, prior to the bid due date; (e) failure to advertise for the
receipt of bids or to provide proper notification of revisions or addenda to
advertisements or bid documents related to bids as prescribed by subsection (d)
of this section shall prevent the acceptance of bids and require the
readvertisement for bids; (f) for any procurement, other than a contract for
the construction or maintenance of a public work procured by other than the
director of the Division of Purchase and Property, the State Treasurer or the
director may negotiate with bidders the final terms and conditions of any
procurement, including price; such ability to so negotiate must be expressly
set forth in the applicable invitation to bid and (i) such bids shall not be
publicly accessible until after negotiations have been completed and the notice
of intent to award the contract has been issued or (ii) notwithstanding
subsubparagraph (i) of subparagraph (f), bids or portions thereof, may be
publicly accessible if the State Treasurer or the director is procuring via a
reverse auction process and the bids, or portions thereof, have been de-identified;
(g) award shall be made with reasonable promptness, after negotiation with
bidders where authorized, by written or electronic notice to that responsible
bidder whose bid, conforming to the invitation for bids, will be most
advantageous to the State, price and other factors considered; and (h) the
Treasurer shall require, with respect to contracts for information technology
goods and services, a limitation of liability determined by the Director of the
Division of Purchase and Property. When negotiations occur pursuant to
subparagraph f. of this section, a written record of the nature and content of
the negotiations, as well as the dates and persons involved, shall become a
public record when the notice of intent to award the contract is issued.�
Notwithstanding the provisions of this subsection, the Director of the Division
of Purchase and Property may structure an advertisement for bids to include an
auction or reverse auction procedure, related to the procurement of goods,
services, or both,
[
with
the exception of contracts for the provision of hospital, surgical,
obstetrical, and other covered health care services and benefits or for the
provider network for those services in connection with the State Health
Benefits Program, the School Employees' Health Benefits Program, and Medicaid
Managed Care Program, except for a pharmacy benefit management contract,
]
whereby
pricing is revealed to all other qualified bidders during the course of the
auction or reverse auction, whenever the director determines that the use of
such procedure will result in bids being more advantageous to the State, price
and other factors considered.

���� Any or all bids may be
rejected when the State Treasurer or the Director of the Division of Purchase
and Property determines that it is in the public interest so to do.� The State
Treasurer or designee may adopt, pursuant to the "Administrative Procedure
Act," P.L.1968, c.410 (C.52:14B-1 et seq.), such rules and regulations as
may be necessary to implement the provisions of this section.

���� This section shall apply to
all bids received on and after the date of enactment of P.L.1999, c.440.

���� b.��� Whenever by law a State
independent authority may negotiate with bidders, after bid opening, the final
terms and conditions of any procurement, including price, and such ability to
so negotiate is expressly set forth in the applicable invitation to bid, a
written record of the nature and content of the negotiations, as well as the
dates and persons involved, shall not be publicly accessible until after the
notice of intent to award the contract is issued.

(cf: P.L.2021, c.4, s.2)

���� 2.��� This act shall take
effect immediately.

STATEMENT

���� This bill permits the Director
of the Division of Purchase and Property in the Department of the Treasury to
structure an advertisement for bids to include an auction or reverse auction
procedure for contracts for the provision of hospital, surgical, obstetrical,
and other covered health care services and benefits or for the provider network
for those services in connection with the State Health Benefits Program, the
School Employees� Health Benefits Program, and Medicaid Managed Care Program.