New Jersey Senate Bill S2995

New Jersey 2022-2023 Regular Session

• Introduced: 9/22/22
• Refer: 9/22/22

Caption

Requires use of federal Coronavirus State Fiscal Recovery Fund grants to reduce increases in premium rates for SHBP and SEHBP for calendar year 2023.

Impact

If enacted, S2995 will have direct consequences on the premium rates approved for medical and prescription drug benefit plans under the SHBP and SEHBP. By utilizing available federal funds, the bill seeks to temporarily reduce the financial impact on employees and retirees, ensuring that healthcare remains more affordable during a time when many other expenses may also be rising. It allocates federal block grant funds to alleviate potential hardships caused by unexpected increases in healthcare premiums.

Summary

Senate Bill S2995 requires the allocation of federal grants from the Coronavirus State Fiscal Recovery Fund to mitigate increases in premium rates for the State Health Benefits Program (SHBP) and the School Employees' Health Benefits Program (SEHBP) for the calendar year 2023. The bill is aimed at easing the financial burden on state employees, retirees, and local education employees and their dependents facing rising healthcare costs as a result of these premium increases.

Contention

Discussions surrounding S2995 may evoke points of contention, particularly regarding the sustainability of relying on federal funding for state health initiatives. Some critics might argue that this approach does not address the underlying issues of rising healthcare costs in the long term. Additionally, there may be debates regarding the adequacy of the federal funds in covering the totality of the premium increases, particularly if these funds prove insufficient.

Implementation

The bill outlines that should the available federal funds be insufficient to fully cover the premium increases, the State Treasurer is mandated to allocate the maximum possible amount from these funds. This creates a framework for ongoing monitoring of funding levels and health benefit costs, ensuring that state agencies can respond effectively to any shortfalls.