New Jersey 2022-2023 Regular Session

New Jersey Assembly Bill A2189

Introduced
2/7/22  

Caption

Requires annual assessment paid by mutual holding company to solely fund health care initiatives; establishes Healthcare Rate Stabilization and Improvements Organization.

Impact

This legislation represents a shift in how funds from mutual holding companies are utilized. Previously, similar assessments could have contributed to broader state funding goals; however, under A2189, the money raised must exclusively fund healthcare initiatives that benefit policyholders, aiming to improve healthcare outcomes across various domains, including maternal and infant health, chronic disease management, and veteran care. This focus shifts the benefits of the revenue directly to the consumers while alleviating some of the fiscal demands on state programs.

Summary

Assembly Bill A2189 establishes a framework for annual assessments imposed on mutual holding companies and certain affiliates in New Jersey, directing the funds specifically towards healthcare initiatives. The bill aims to create the Healthcare Rate Stabilization and Improvements Organization, a nonprofit entity responsible for administering the funds raised from these assessments. The initial assessment mandated is significant, set at $600 million, with subsequent limited duration annual assessments not exceeding $1.25 billion over 17 years. The annual assessments will be based on the insurers' earned premiums, which facilitates a predictable revenue stream for healthcare improvements.

Contention

There could be varying opinions surrounding the bill, particularly regarding the accountability and efficiency of the newly established nonprofit organization. Critics may question whether the allocated funds will truly serve the intended healthcare initiatives effectively, especially given the substantial amount of money involved. Supporters of the bill argue that ensuring that funds collected from policyholders are used directly for their benefit is a necessary measure for equitable healthcare service delivery. The governance structure of the nonprofit also raises questions about political influence and stakeholder representation in decision-making processes.

Companion Bills

No companion bills found.

Previously Filed As

NJ A1015

Requires annual assessment paid by mutual holding company to solely fund health care initiatives; establishes Healthcare Rate Stabilization and Improvements Organization.

NJ SCR56

Proposes constitutional amendment dedicating certain assessments paid by mutual holding company to reduce health insurance premiums for the company's policyholders.

NJ ACR90

Proposes constitutional amendment dedicating certain assessments paid by mutual holding company to reduce health insurance premiums for the company's policyholders.

NJ HB3090

Insurance; reorganization; mutual insurer; stock insurer; Insurance Commissioner; mutual holding company; plan; foreign mutual insurance companies; effective date.

NJ HB210

Provides for technical corrections to certain provisions affecting mutual insurance holding companies

NJ H76

Access to Healthcare Options

NJ SB827

Relating to the establishment and operation of urban mutual insurance companies.

NJ SB166

Insurance Dept., life and annuity policies, standard nonforfeiture law for individual deferred annuities, group capital calculation and stress test, providing for holding companies, duties to Commission and lead state commissioner, small company alternative valuation provision, exemptions, exemption premium based on valuation manual of NAIC, Commissioner of Insurance may regulate by rule, Secs. 27-15-28.2, 27-29-1, 27-29-3, 27-29-4, 27-29-7, 27-36A-20 am'd.

NJ HB78

Insurance Dept., life and annuity policies, standard nonforfeiture law for individual deferred annuities, group capital calculation and stress test, providing for holding companies, duties to Commission and lead state commissioner, small company alternative valuation provision, exemptions, exemption premium based on valuation manual of NAIC, Commissioner of Insurance may regulate by rule, Secs. 27-15-28.2, 27-29-1, 27-29-3, 27-29-4, 27-29-7, 27-36A-20 am'd.

NJ HB2334

Enacting the Kansas protected cell captive insurance company act, providing for the redomestication of a foreign or alien captive insurance company and updating certain terms, requirements and conditions of the captive insurance act, reducing insurance company premium tax rates, creating parity between the insurance agent and public adjuster licensing requirements, authorizing insurers to file certain travel insurance policies under the accident and health line of insurance and authorizing the commissioner of insurance to select and announce the version of certain instructions, calculations and documents in effect for the upcoming calendar year and cause such announcement to be published in the Kansas register not later than December 1 of the current year.

Similar Bills

NJ A1015

Requires annual assessment paid by mutual holding company to solely fund health care initiatives; establishes Healthcare Rate Stabilization and Improvements Organization.

HI SB1132

Relating To The Medicaid Sustainability Program.

HI HB978

Relating To The Medicaid Sustainability Program.

CA AB78

Bergeson-Peace Infrastructure and Economic Development Bank.

NJ A3031

Establishes fund to care for retired horses and improve track safety.

CA AB1415

Department of Water Resources: reporting requirements: civil penalties.

HI HB1760

Relating To State Finances.

HI SB2339

Relating To State Finances.