NJ S1138

Dental service corporations may become subsidiaries of nonprofit holding companies or other nonprofit parent organizations that are not themselves dental service corporations

Dental service corporations that become subsidiaries must continue to comply with all existing requirements under the Dental Service Corporation Act of 1968

Current law limits dental service corporations to investing no more than 10% of assets or 50% of surplus (whichever is less), placing them at a competitive disadvantage against larger health insurers offering dental services

The change allows nonprofit parent companies greater flexibility to invest funds and help their dental service corporation subsidiaries compete in the market while maintaining consumer protections at the subsidiary level

Takes effect on the first day of the sixth month following enactment