BillTrack50 logo
Free Signup Login
Bill

Bill > S4

NJ S4

NJ S4
Clarifies charitable role of health service corporations, revises membership of board of directors, establishes process to determine efficient level of surplus, and requires timely publication of certain information by DOBI.*

summary

Introduced
06/22/2017
In Committee
06/29/2017
Crossed Over
06/29/2017
Passed
Dead
01/08/2018

Introduced Session

2016-2017 Regular Session

Bill Summary

This bill makes various revisions to the regulation of health service corporations. The bill clarifies the charitable role of health service corporations, revises the membership of the board of directors of health service corporations, and establishes a process to determine an efficient level of surplus. Specifically, the bill provides for three members of a health service corporation board of directors to be elected by its subscribers. The bill also requires a public process, including input from experts, members of the public, and the health service corporation, to be established to determine an efficient and appropriate range of surplus for a health service corporation. If a surplus falls above that range and the health service corporation cannot justify the excess, the health service corporation must provide a plan to reduce the surplus level in a manner that results in the surplus being within the efficient surplus range established under the bill. The plan shall include: (1) proposals to benefit to policyholders; and (2) proposals to improve the overall health status of all New Jersey residents by: expanding access to affordable, quality health care for underserved individuals; responding to emerging health care issues in New Jersey; and promoting fundamental improvements in the health status of all New Jersey residents, including but not limited to substance use disorder treatment and prevention, behavioral healthcare, maternal, child and chronic health services, cancer screening, research and treatment, and improving veterans' access to health care. The bill takes effect on February 1, 2018, except effective immediately upon enactment, the bill requires the Department of Banking and Insurance to publish on its website the annual financial statement of each carrier required to file with the department within 30 days of the receipt of that statement.

AI Summary

This bill makes various revisions to the regulation of health service corporations in New Jersey. The key provisions are: 1. Clarifying the charitable role of health service corporations, which must have a mission to fulfill their obligation as an insurer of last resort, provide affordable and accessible health insurance, assist and support public and private health care initiatives for the uninsured, promote the integration of the health care system, and recognize an ongoing responsibility to contribute to improvements in the overall health status of all New Jersey residents. 2. Revising the membership of the board of directors of health service corporations to include three members elected by subscribers, in addition to four public members appointed by the Governor and eight members elected by the board. 3. Establishing a public process, including input from experts and the public, to determine an efficient and appropriate range of surplus for a health service corporation. If a surplus exceeds the efficient range and the health service corporation cannot justify the excess, it must provide a plan to reduce the surplus, including proposals to benefit policyholders and improve the overall health status of New Jersey residents. 4. Requiring the Department of Banking and Insurance to publish on its website the annual financial statement of each carrier required to file with the department within 30 days of receiving the statement.

Committee Categories

Budget and Finance, Justice

Sponsors (1)

Last Action

Received in the Assembly, Referred to Assembly Judiciary Committee (on 06/29/2017)
(1 Companion Bills)

bill text

bill summary

Loading...

bill summary

Loading...
Loading...