New Jersey 2022-2023 Regular Session

New Jersey Assembly Bill A1743

Introduced
1/11/22  

Caption

Prohibits insurers from offering stop loss insurance to small employers.

Impact

The introduction of A1743 will significantly change the landscape of health insurance for small employers, potentially increasing both their financial liability and the predictability of their healthcare costs. With the prohibition of stop loss insurance, small employers might find themselves needing to find alternative methods for managing unexpected health costs. Proponents of the bill argue that it can shield employees from inadequate care that results from employers self-insuring too aggressively. Critics, however, might see this move as another burden placed upon small businesses during a time when they are struggling to provide health benefits amid rising costs.

Summary

Assembly Bill A1743 proposes to prohibit health insurance carriers from offering stop loss insurance to small employers in New Jersey. This regulation is framed within the statutes that govern the New Jersey Small Employer Health Benefits (SEH) Program, which currently defines a small employer as one that employs an average of 2 to 50 employees. Stop loss insurance is intended to reimburse employers for catastrophic or unexpected health expenses, allowing them to self-insure part of their health coverage. The bill seeks to close a regulatory gap and aims to promote more robust health benefits for small employers and their employees.

Contention

Notable contention arises from the differing perspectives on how this bill will affect small employers. Opponents of the prohibition suggest that stop loss insurance is a vital tool that allows small employers to balance risk and manage costs effectively. The inability to offer stop loss insurance may dissuade small businesses from offering health benefits altogether. On the other hand, supporters contend that the bill will lead to improved health outcomes for employees by ensuring that employers do not compromise health coverage in favor of cost-saving measures. The overall debate encompasses not only regulatory impacts but also broader implications for employee health rights and employer responsibilities.

Companion Bills

No companion bills found.

Previously Filed As

NJ A1304

Revises certain requirements for individual and small employer health benefits plans and for small employer members of multiple employer welfare arrangements.

NJ A2765

Revises certain requirements for individual and small employer health benefits plans and for small employer members of multiple employer welfare arrangements.

NJ A4357

Permits inclusion of volunteer firefighters and other emergency responders within municipal eligible employee group for purposes of the small employer health benefits plan statutes.

NJ A432

Allows certain sole proprietors to join small employer health benefits purchasing alliance.

NJ A3086

Permits inclusion of volunteer firefighters and other emergency responders within municipal eligible employee group for purposes of the small employer health benefits plan statutes.

NJ S1188

Revises certain requirements for individual and small employer health benefits plans and for small employer members of multiple employer welfare arrangements.

NJ S3480

"The Small Business Health Insurance Affordability Act"; revises certain requirements for individual and small employer health benefits plans.

NJ SB1375

Health insurance: small employer groups.

NJ A5137

"The Small Business Health Insurance Affordability Act"; revises certain requirements for individual and small employer health benefits plans.

NJ H5418

Amends the definition of "small employer" for purposes of the small employer health insurance availability act to mean a business employing less than one hundred (100) employees rather than fifty (50) employees.

Similar Bills

NJ A3415

Requires board of education to directly employ certain professionals; permits board of education to contract for certain personnel; permits use of virtual or remote instruction for public school students in certain circumstances.

NJ S2333

Requires board of education to directly employ certain professionals; permits board of education to contract for certain personnel; permits use of virtual or remote instruction for public school students in certain circumstances.

NJ A5874

Requires board of education to directly employ certain professionals; permits board of education to contract for certain personnel; permits use of virtual or remote instruction for public school students in certain circumstances.

CA AB1511

Insurance: omnibus.

CA SB1255

Insurance.

NJ S2068

Establishes Health Care Workers COVID-19 Supplemental Benefits Program; appropriates $30 million.

NJ A5540

Establishes Health Care Workers COVID-19 Supplemental Benefits Program; appropriates $30 million.

NJ S3964

Establishes Health Care Workers COVID-19 Supplemental Benefits Program; appropriates $30 million.