New Jersey Assembly Bill A412

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Permits certain retirees to choose health care coverage under traditional Medicare or Medicare Advantage plan options offered by SHBP or SEHBP.

Impact

The implications of A412 are significant for state laws governing health benefits for retirees. By allowing retirees to select between traditional Medicare and Medicare Advantage plans, the bill introduces a level of flexibility that was previously unavailable. The Division of Pensions and Benefits is also tasked with calculating the difference in employer-paid premiums between the two plan options, thereby ensuring transparency in cost differences. This change is likely to impact the financial management of health benefits for retirees and could affect overall state budgeting and planning as they accommodate varying premium rates.

Summary

Assembly Bill A412 permits certain retirees, specifically those eligible for Medicare, the option to choose their health care coverage under the traditional Medicare program or the Medicare Advantage plans currently available through the State Health Benefits Program (SHBP) or the School Employees' Health Benefits Program (SEHBP). This flexibility aims to provide retirees with greater agency in selecting their health care coverage upon retirement. Furthermore, the bill requires that all health care plans available under both programs also be offered under the traditional Medicare program, ensuring uniformity in the options accessible to retirees.

Contention

Despite its intended benefits, A412 may face notable contention. Concerns may arise regarding the potential financial burden on retirees who opt for traditional Medicare, as they must pay the difference in premiums compared to the Medicare Advantage plans. Additionally, there may be debates about the adequacy of the coverage options provided and whether retirees are sufficiently informed to make the best decision for their health care needs. As the bill seeks to amend existing health benefit provisions for public employees, opposition is likely from those who argue that altering the current benefits framework could introduce complications in benefits administration.