New Jersey Senate Bill S1185

New Jersey 2022-2023 Regular Session

• Introduced: 1/31/22
• Refer: 1/31/22

Caption

Provides premium assistance to certain small employers who purchase health benefits plans; appropriates $10 million.

Impact

S1185 is expected to have a significant impact on state laws concerning health benefits for small employers. It opens up access to health insurance, particularly for very small businesses that may not have previously offered such benefits. By allowing payments that cover a substantial portion of premium costs, the bill aims to make it feasible for smaller employers to join the insurance market. There are specific eligibility requirements for participation, including limitations on the number of employees and the maximum salary of employees, thereby focusing the assistance on businesses most in need of support.

Summary

Senate Bill S1185 establishes the 'small employer premium assistance program' designed to encourage small employers in New Jersey to provide health benefits coverage to their eligible employees and their dependents. The program allows qualifying small employers to claim a premium assistance payment amounting to up to 50% of the health insurance premiums they pay. This support is aimed at alleviating the financial burden on small businesses that otherwise may struggle to afford providing health insurance to their employees. The bill appropriates $10 million from the state’s General Fund to facilitate these premium assistance payments over two consecutive plan years.

Contention

Despite its intentions, the bill may raise concerns regarding its long-term sustainability and impact on the state's budget. The funding cap of $10 million could lead to competition among qualifying small employers, creating a first-come, first-served system that may disadvantage some eligible employers. Additionally, discussions among legislators and stakeholders suggest that there are varying opinions on whether the program sufficiently addresses the health coverage needs of employees in various sectors. Critics may argue that reliance on such assistance programs does not sufficiently address the foundational issues of healthcare affordability and accessibility for small employers.