New Jersey Assembly Bill A432

New Jersey 2022-2023 Regular Session

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

Caption

Allows certain sole proprietors to join small employer health benefits purchasing alliance.

Summary

Assembly Bill A432 aims to amend existing legislation regarding small employer health benefits purchasing alliances. The bill proposes to allow certain sole proprietors—those who operate businesses in New Jersey without any employees—to join these alliances, which traditionally have been limited to small employers with at least two employees. This inclusion is significant as it provides sole proprietors the opportunity to gain access to more affordable health insurance options through collective purchasing power, similar to larger businesses. The legislation modifies the definition of 'small employer' within the framework of the New Jersey Small Employer Health Benefits Program, reducing the employee threshold from two to one, thereby making it easier for sole proprietors to participate. By joining purchasing alliances, these sole proprietors can negotiate reduced premiums and streamline administrative costs, aligning their options more closely with those offered to larger employers. One notable contention surrounding the bill relates to the impact on the current dynamics of the health insurance market in New Jersey. Supporters argue that the proposed amendments would level the playing field for small businesses and sole proprietors, who have historically faced challenges in affording comprehensive health insurance. Yet, opponents are concerned that expanding access could strain existing resources within the insurance system or lead to adverse selection. The enactment of A432 would result in a notable shift in the state's approach to health insurance for small employers. It encourages the formation of alliances comprised of small businesses, potentially increasing competition within the health insurance market. Additionally, it is essential to monitor how the adjustments will affect premiums and coverage options for both new and existing members of these purchasing alliances.