New Jersey 2022-2023 Regular Session

New Jersey Assembly Bill A5626

Introduced
6/20/23  
Refer
6/20/23  

Caption

Imposes certain rate filing requirements concerning certain health benefits plans available on State-based exchange.

Impact

If enacted, A5626 would modify existing regulations governing health insurance carriers by reinforcing compliance with risk pooling and adjusting rate approval processes. The Commissioner of Banking and Insurance would be charged with developing regulations that assess a range of factors during rate proposal evaluations. These factors include how well carriers meet risk pooling requirements and the overall design of the benefits plans. This measure aims to improve the affordability and accessibility of health insurance within the marketplace, potentially influencing how premiums are calculated and reducing costs for consumers eligible for premium subsidies.

Summary

Assembly Bill A5626 aims to impose specific rate filing requirements for individual and small employer health benefits plans available through New Jersey's State-based exchange, known as 'Get Covered NJ'. The legislation mandates that carriers adhere to the Affordable Care Act's (ACA) single-risk-pool rule, which requires pricing strategies for health insurance plans that align with projected utilization across the entirety of the risk pool. This approach is intended to ensure that the silver and gold levels of health plans are priced appropriately based on their actuarial value, thus enhancing fairness and consistency in health care costs for consumers.

Sentiment

The sentiment surrounding A5626 appears to be largely positive among supporters, who see it as a necessary step to improve health insurance options and affordability for residents. Advocates argue that by utilizing a standardized approach to rate setting, the bill can help stable pricing and enhance consumer options. Critics, however, might express concern over the potential bureaucratic implications and further regulatory requirements placed on carriers, which could be viewed as an impediment to market flexibility. Nonetheless, the general atmosphere during discussions suggests a collective recognition of the importance of tackling rising health care costs.

Contention

Key points of contention regarding A5626 revolve around its implementation and the administrative oversight it would necessitate. Opponents may argue that additional regulatory measures could lead to complications and overhead for health insurance providers, potentially disincentivizing them from participating in the State-based exchange. Additionally, there is concern regarding how accurately the proposed factors for rate adjustments reflect the complexities of health care utilization and costs. While supporters emphasize its consumer benefits, monitoring the balance between regulation and market operations will be critical as the bill progresses.

Companion Bills

NJ S3896

Same As Imposes certain rate filing requirements concerning certain health benefits plans available on State-based exchange.

Previously Filed As

NJ S1971

Imposes certain rate filing requirements concerning certain health benefits plans available on State-based exchange.

NJ S3896

Imposes certain rate filing requirements concerning certain health benefits plans available on State-based exchange.

NJ A5137

"The Small Business Health Insurance Affordability Act"; revises certain requirements for individual and small employer health benefits plans.

NJ S3480

"The Small Business Health Insurance Affordability Act"; revises certain requirements for individual and small employer health benefits plans.

NJ A1304

Revises certain requirements for individual and small employer health benefits plans and for small employer members of multiple employer welfare arrangements.

NJ A2765

Revises certain requirements for individual and small employer health benefits plans and for small employer members of multiple employer welfare arrangements.

NJ S1188

Revises certain requirements for individual and small employer health benefits plans and for small employer members of multiple employer welfare arrangements.

NJ A432

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

NJ S2875

Makes certain changes to calculation of minimum loss ratio requirements for health benefits plans in individual and small employer markets.

NJ A3972

Makes certain changes to calculation of minimum loss ratio requirements for health benefits plans in individual and small employer markets.

Similar Bills

NJ S3896

Imposes certain rate filing requirements concerning certain health benefits plans available on State-based exchange.

NJ S1971

Imposes certain rate filing requirements concerning certain health benefits plans available on State-based exchange.

NJ S4641

Requires State to adopt practices to reduce SNAP benefits theft and to replace stolen SNAP benefits under certain circumstances; upgrades criminal penalties for SNAP benefits theft; makes appropriation.

CA AB933

Food and agriculture omnibus bill.

NJ S1830

Extends certain federal income tax advantages of individual health savings accounts to individual taxpayers under New Jersey gross income tax.

WV SB518

Exempting non-grantor trusts administered in state from personal income taxation

CA AB647

Grocery workers.

CA SB907

Electronic benefits transfer systems: farmers’ markets.