Mary Beaumont, Vice President
Lawmakers are preparing to take up legislation intended to prevent significant premium increases in New Jersey’s individual health insurance market, and NJBIA’s Mary Beaumont wants to know what you think about the bills.
The bill sponsors have agreed to meet with stakeholders and consider amendments, and NJBIA is grateful for the opportunity to have input on them. The association also wants feedback from member companies on how the legislation will impact them.
The bills are in response to the federal tax reform law that repealed the IRS penalties for those not covered by health insurance starting in 2019, which had been required under the Affordable Care Act (ACA).
A-3380 would establish a state “individual mandate” requiring all resident taxpayers to obtain health insurance coverage that qualifies as minimum essential coverage, which includes coverage under health plans provided by employers. The penalty would be the same as that under the ACA prior to the repeal (approximately $695 per adult, up to a family maximum of $2,085, or 2.5 percent of household income, whichever is greater).
A-3379 permits the state to apply for a federal waiver under the ACA to create a reinsurance program to reimburse health insurance carriers in the individual market for claims incurred that exceed a certain threshold amount. Approval of the waiver by the federal government would allow New Jersey to apply for and draw down federal funds for the reinsurance program. In addition, health insurance carriers and third-party administrators that contract to oversee, manage, deliver or provide healthcare services in the large and small group health insurance market would be assessed. These monies together with the federal funds would then be used to reimburse the carriers in the individual market for high-cost claims. The bill would take effect immediately.
NJBIA has relayed its concerns to the Senate and Assembly bill sponsors because it is not yet known (1) how much will be collected under the state individual mandate and (2) it is very likely that any assessments of health insurance carriers to fully fund the reinsurance program will result in premium increases for both small and large employer health benefits plans in its effort to stabilize the individual market.
No mandate
I don’t feel I should be surcharged to pay for anything I don’t vote for.
Murphy is an idiot.
The current health care cost and deductibles have skyrocketed in New Jersey the past 3 years. My personal coverage went from 1400 a month in 2016 with a 2000.00 deductible to this year, $1581.00 a month with a $6000.00 deductible and then a 50% co-pay until you reach $13,000.
Than is an outrageous increase and makes it unaffordable to get tests for anything that is not a medical crisis. It only covers general exams annually unless they find a problem, then you pay until you reach your deductible.This will lead to greater costs down the road and more unhealthy people. One man wrote on Facebook, ” If the cancer comes back I will not do anything because my deductible is to high and I don’t want to burden my children with any possible medical costs I cant afford.”
If this bill will increase the health insurance of already burdened families, it will be a death sentence for these families, both figuratively and literally.
Exactly Joyce. I am paying over 1500 a month with a 6000.00 deductible and have had over 22000 in uncovered expenses in the last year. I have continued medical expenses and will never have used every resource. Obamacare has destroyed my life and has made is so I will owe money until the day I die. disgusting. Wiping out middle class amercia.
This mat very well be the last straw that will cause an exodus from the State of New Jersey. It has become affordable to maintain a lifestyle here and ironically, I just answered a poll today seeking to find out how to keep the millennials in the state. Passing this bill sure won’t help …
Excellent point!
Like auto insurance, individuals should be required to have health insurance BUT at the level they decide. Specifically they could mandate major medical coverage but not everyone wants or needs “essential” services such as wellness check-ups, maternal, and prescription coverage. This is what is preventing insurance from being reasonably affordable.
I am strongly against this legislation as it’s proposed!
No, the Federal Government should not pay insurance Companies anything additional. on high cost claims. The Insurance Company can opt to charge at a lower percentage rate x the Medicare fee schedule and make that the maximum fee allowable across the board. If people want to go out of network there needs to be a cap on the medical fees for service as well. Premiums and deductible decrease. Problem solved. Markets should also be opened to other states so we do not have to tolerate premium increases. Individuals should have insurance but have the option to pay the minimum required.
Health insurance is already not affordable for many who have no employer sponsored health insurance. To fine someone for someting they can’t afford made no sense in the first place. The insurance that is supposed to be the minimum essential health insurance carries high deductibles and low coverage amounts. We in NJ need to have ‘affordable’ health insurance that someone can actually afford. If any of these so called solutions raises any costs, then it is not a solution. We do not need more reasons for our residents to leave the state. If our government really wants to do something about the high cost of Healthcare, then all of the legislators from the President on down need to be on the same Healthcare program as is offered to the American public. If the legislators don’t want it for themselves, then why are they forcing it on the American public?
No,
The law should be to make all insurance carriers operating in the state non-for-profit. It’s insane how these companies make billions out of people’s pains. As small business owner I am being killed slowly but surely month after month by this scam. I pay $1,600 month for a healthy family of 4 (2- adults, 2- children) with a 12k/y deductible. On top of that I get billed pretty much for everything, I even got billed for my minor children regular vaccines. So this doesn’t cover absolutely anything. It’s a total scheme designed to make the insurance companies CEOs richer.
My bags are packed. Leaving the Garden – I mean the “Tax” State.
Kids are grown and no longer in NJ. They got their degrees out of state, cheaper than in-state tuition. Taking my savings and future earnings to a better life.
And to the last person leaving the state, please turn off the lights.
I’m the owner of a very small business in jersey city. We need to FIX this system. I work my butt off every day to make my business work, so I can pay outrageous premiums for insurance with insane deductibles and horrible care? Something has to change.
Insurance companies, government and individuals need to work together to figure it out. Nj is a very difficult place for small business to begin with
Changing to a state mandate will make matters worse. This is a very broken system with $$$ being the focus and not actual “health” care. Fix the system! Don’t make more people pay for this broken scam.
Don’t pass either one of these bills!
I am adamantly opposed to the proposed legislation or any other legislation in line with the ACA. As the owner of a small business in South Jersey, I have seen a 30% increase in health insurance premiums over the past 3 years. Unfortunately, out-of-pocket expenses have soared as well. It is ridiculous to think anyone could start a family when they have a $6,000.00 deductible?
In my humble opinion, we have to pick our poison. Either we are content to be swept into a sub-par Medicare health care system initiated by politicians who helped fuel this crisis; or, we can try to push to deregulate and allow the open market to fix the current health care crisis. I can’t help remembering Reagan’s famous declaration that “government is not the solution to our problem; government is the problem.” If only Murphy, Menendez, Booker and Sweeney understood this concept.