Requires DOBI to provide compensation to members of self-funded multiple employer welfare arrangements under certain circumstances.
Note
Overall, S210 aims to address the gaps in support for MEWA members by ensuring that they have a chance to recover some of their financial losses through established state mechanisms, while also clearly outlining their responsibilities and potential liabilities in the case of financial instability within their arrangements.
Impact
The proposed legislation is designed to provide a safety net for members of MEWAs, particularly in scenarios involving unforeseen circumstances like natural disasters or pandemics. The bill emphasizes that members are individually liable for the obligations of the MEWA, and it lays the groundwork for how assessments will be calculated and levied on the members. Amendments to P.L.2001, c.352 will clarify that in situations where a MEWA is unable to meet its obligations, members may be required to contribute financially based on their respective earned premiums.
Summary
S210 is a legislative bill that seeks to amend existing regulations regarding self-funded multiple employer welfare arrangements (MEWAs) in New Jersey. The bill mandates that the Department of Banking and Insurance (DOBI) compensates members of MEWAs under specific circumstances outlined in the bill. It stipulates that in the event a MEWA faces liquidation, rehabilitation, conservation, or dissolution, and this is not due to mismanagement, the Commissioner is tasked with compensating members 60 percent of the value of assessments determined necessary by a court to cover unpaid claims.
Contention
One element of contention revolves around the principle of assessment liability for members. The bill introduces a notification requirement that members must be clearly informed regarding their potential financial responsibilities, emphasizing that coverage provided by MEWAs does not equate to traditional insurance protections. This distinction raises debate around consumer awareness and the ethics of self-funded arrangements that may not be backed by state insurance guarantee mechanisms.
Revises certain requirements for individual and small employer health benefits plans and for small employer members of multiple employer welfare arrangements.
Revises certain requirements for individual and small employer health benefits plans and for small employer members of multiple employer welfare arrangements.
Revises certain requirements for individual and small employer health benefits plans and for small employer members of multiple employer welfare arrangements.
Establishes grant program in Department of the Treasury for certain employers affected by winding down of Affiliated Physicians and Employers Master Trust; establishes "Self-Funded Multiple Employer Welfare Arrangement Security Fund."