New Jersey Assembly Bill A4699

New Jersey 2022-2023 Regular Session

• Introduced: 10/3/22
• Refer: 10/3/22

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, this bill will have direct implications on state laws concerning public employee health benefits. By appropriating federal funds specifically for the reduction of health insurance premium rates, the bill aims to ensure that the financial burden of increased health care costs is alleviated for public employees. The allocation of these federal funds is contingent upon their availability, and the bill outlines that the State Treasurer is to use the maximum allowable funds to effectuate these reductions where possible. As a result, this could lead to a significant decrease in out-of-pocket expenses for many state employees during the upcoming year.

Summary

Assembly Bill A4699 is focused on addressing the premium rate increases for the State Health Benefits Program (SHBP) and the School Employees' Health Benefits Program (SEHBP) for the year 2023. The bill mandates that federal funds allocated from the Coronavirus State Fiscal Recovery Fund, as per the American Rescue Plan Act of 2021, be utilized to mitigate these increases. Its primary goal is to provide financial relief to both active and retired state employees, local government employees, and local education employees and their dependents by reducing their projected premium costs for health coverage.

Contention

There may be contention surrounding the bill regarding the dependence on federal funding and the sustainability of such financial relief measures. Some stakeholders might raise concerns about the reliance on temporary federal grants versus long-term state funding solutions. Additionally, debates may arise over whether the measures adequately address the root causes of rising premium rates or simply serve as a stopgap until further reforms can be implemented. The appropriations process and how well the funds are managed will also likely be points of focus in ongoing discussions about the bill.