Bill > A3383

Introduced Session

This bill establishes a grant program in the Department of Treasury for certain employers affected by the winding down of the Affiliated Physicians and Employers Master Trust. Specifically, the bill requires the State Treasurer to establish a program providing grants to employers that were members of the Affiliated Physicians and Employers Master Trust during 2020 and 2021 and who were affected by the winding down of the Affiliated Physicians and Employers Master Trust. The bill requires the State Treasurer to contact each employer that was a member of the Affiliated Physicians and Employers Master Trust during 2020 or 2021 and to provide the employer with information about the program and an application to apply for a grant. The bill provides that an employer that was a member of the Affiliated Physicians and Employers Master Trust may apply to the State Treasurer for a grant and the State Treasurer is to evaluate applications and make grants as appropriate. No grant may be awarded pursuant to the bill after the end of the 24th month following the effective date of the bill. The bill requires the State Treasurer to evaluate applications from any employer that was a member of the Affiliated Physicians and Employers Master Trust during 2020 or 2021 that was required to pay an assessment due to liabilities of the Affiliated Physicians and Employers Master Trust. The grant is limited to the amount of the assessment required to be paid by the employer. The bill allocates such amounts from federal government assistance that are necessary to effectuate the purposes of the bill. The Affiliated Physicians and Employers Master Trust, doing business as the Members Health Plan NJ, is a self-funded multiple employer welfare arrangement that provides health benefits for about 2,500 physician practices and other small businesses in New Jersey. The trust filed for bankruptcy in May, 2021, as a result of millions of dollars in pandemic-related testing cost and treatment claims. Because the trust cannot pay the costs associated with these benefits, employers who are members of the trust have been required to pay an assessment based on their liabilities. This bill establishes a grant program to reimburse these employers for the cost of the assessments.

Committee Categories

Jay Webber (R)*, 

Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 02/01/2024)

Official Document