Bill > S2676

Introduced Session

This bill requires certain entities authorized to issue health benefits plans to pay annual assessments based on the entity's net written premiums. The bill requires entities to pay an annual assessment of 2.75% of the entity's net written premiums. Entities are subject to the bill if they are subject to section 9010 of the Affordable Care Act and may be subject to an assessment by the State. Entities include various organizations that are authorized to issue health and dental benefits plans in this State. The bill requires entities to annually file with the Commissioner of Banking and Insurance their net written premiums for the preceding year, no later than April 1 of each year. The bill requires the commissioner to calculate and issue to the entity a certified assessment, which will be 2.75% of the entity's net written premiums. The commissioner is required to calculate the assessment without regard to: (1) the threshold limits established in section 9010(b)(2)(A) of the Affordable Care Act; or (2) the partial exclusion of net premiums provided for in section 9010(b)(2)(B) of the Affordable Care Act. The bill requires entities to pay the assessment issued by the commissioner to the State Treasurer no later than May 1 of each year, as prescribed by the commissioner. The bill provides that if the commissioner determines that the amount of the assessment will reduce the State's total revenue, the commissioner may reduce the assessment. The bill establishes in the Department of the Treasury a nonlapsing revolving fund to be known as the "Health Insurance Affordability Fund." This fund is to be the repository for all monies collected pursuant to the bill. As directed by the commissioner, the monies in the fund are to be be used only for the purposes of increasing affordability in the individual and small group markets and providing greater access to health insurance to the uninsured, including minors, through subsidies, reinsurance, tax policies, outreach and enrollment efforts, buy-in programs, such as the NJ FamilyCare Advantage Program, or any other efforts that can increase affordability for small employers and individual policyholders in those markets.

Committee Categories

Nia Gill (D)*,  Joe Vitale (D)*, 

Substituted by A4389 (2R) (on 07/30/2020)

Official Document