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Bill > A5329
NJ A5329
NJ A5329Requires DOH to study cost of establishing long-term health care benefit for certain individuals.
summary
Introduced
02/20/2025
02/20/2025
In Committee
02/20/2025
02/20/2025
Crossed Over
Passed
Dead
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill requires the Department of Health to study the cost of establishing a long-term health care benefit for certain individuals. Under the bill, the Commissioner of Health (commissioner) is to study modeling of public and private options for leveraging private resources to help individuals prepare for long-term health care services and support needs. The study is to model two options: (1) a public long-term health care benefit for workers, funded through a payroll deduction that would provide a time-limited long-term health care insurance benefit; and (2) a public-private reinsurance or risk-sharing model, with the purpose of providing a stable and ongoing source of reimbursement to insurers for a portion of the insurer's catastrophic long-term health care services and supports losses in order to provide additional insurance capacity for the State. Within 365 days following the bill's effective date, the commissioner is to prepare and submit a report containing all relevant findings to the Governor, and to the Legislature. The report is to include any recommendations for legislation or regulatory changes that would address long-term care health benefits, and include input from the Assembly Aging and Human Services Committee, the Senate Health, Human Services and Senior Citizens committee, and other interested stakeholders. The report is to also include an analysis that considers: (1) the expected costs and benefits for participants; (2) the total anticipated number of participants; (3) the projected savings to the State's Medicaid program, if any; and (4) the legal and financial risks to the State. Presently, the cost for long-term health care in New Jersey may exceed more than $65,000 a year. The current average length of stay in a long-term care facility is 2.5 years. One national study, which projected nursing home use, suggested that, of the approximately 2.2 million persons reaching age 65 each year, more than 900,000 are expected to enter a nursing home. A similar study reported that, among people who live to age 65, one in four would spend at least one year or more in a nursing home or other type of long-term care facility.
AI Summary
This bill requires the New Jersey Department of Health (DOH) to conduct a comprehensive study on potential long-term health care benefits for workers, with the goal of addressing the high costs of long-term care. The study will explore two specific options: first, a public long-term health care benefit funded through payroll deductions that would provide time-limited insurance coverage, and second, a public-private reinsurance model designed to help insurers manage catastrophic long-term care losses. Within 365 days of the bill's enactment, the Commissioner of Health must submit a detailed report to the Governor and Legislature, which will include recommendations for potential legislative or regulatory changes. The report must analyze each option's expected participant costs and benefits, anticipated participation numbers, potential Medicaid program savings, and potential legal and financial risks to the state. The bill contextualizes the study by noting that current long-term care costs can exceed $65,000 annually, and national studies suggest that one in four people who reach age 65 will spend at least one year in a long-term care facility. The bill will automatically expire once the report is submitted, and the DOH is required to provide periodic status updates to relevant legislative committees during the study period.
Committee Categories
Health and Social Services
Sponsors (1)
Last Action
Introduced, Referred to Assembly Health Committee (on 02/20/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/A5329 |
| BillText | https://pub.njleg.gov/Bills/2024/A5500/5329_I1.HTM |
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