Bill > A1015

Introduced Session

This bill requires the annual assessment paid by a reorganized mutual holding company and certain affiliates be used to fund health care initiatives. Current law permits a health care service corporation to reorganize as a mutual holding company. Pursuant to current law, the mutual holding company or any affiliate benefiting from the establishment of a mutual holding company is to pay 17 annual assessments. Through this legislation, it is the sponsor's intent that the funds generated by the assessment, having originally been collected from policyholders, be used to benefit those policyholders rather than to meet the needs of government. This bill requires that the funds collected pursuant to the annual assessments required of a mutual holding company are only to be used to fund health care initiatives to benefit policyholders. The bill also requires the Commissioner to establish a nonprofit, healthcare improvement corporation to be known as the "Healthcare Rate Stabilization and Improvements Organization." The bill provides that the initial assessment paid pursuant to current law is to be paid to the organization, and not to the State of New Jersey. The board of the organization is to establish a plan for use of the funds for rate stabilization or other purposes that would improve the quality or efficiency of healthcare in the State of New Jersey, including, but not limited to, improving outcomes in infant mortality, maternal mortality, diabetes, heart disease and veteran's health. The board is to establish subaccounts within the account established pursuant to the bill. Each subaccount is to be allocated to the portion of the initial allocation that approximates the share of total covered lives within the various segments of the health service corporation's covered lives prior to reorganization. The subaccounts are to include, but not be limited to, subaccounts on behalf of: small group employers and covered lives; local government employers and covered lives; individual policies; large group employers and covered lives; Medicaid and Medicare payers and covered lives; and school employers and covered lives.

AI Summary

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Nancy Muñoz (R)*, 

Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 01/09/2024)

Official Document