New Jersey Senate Bill S1189

New Jersey 2022-2023 Regular Session

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

Caption

Prohibits carriers that withdraw from New Jersey individual or small employer health insurance markets from acting as Medicaid program carriers in the State.

Impact

The implementation of S1189 could significantly influence the dynamics of the health insurance marketplace in New Jersey. By making it restrictive for carriers to pull out of the individual or small employer health insurance markets without risking their participation in public health programs like Medicaid and NJ FamilyCare, the bill seeks to deter instability in these crucial sectors. Supporters argue that this measure will help secure ongoing insurance options for individuals and families who rely on these programs, ensuring better health coverage availability for low-income residents.

Summary

Senate Bill S1189 aims to address the eligibility of insurance carriers within New Jersey's health insurance market, specifically focusing on those that withdraw from offering individual health benefit plans or small employer health benefits. The bill stipulates that any insurance carrier which exits these markets will subsequently be prohibited from entering into contracts with the Department of Human Services to provide services under the Medicaid program or NJ FamilyCare program. This legislative effort is rooted in the desire to maintain stable health coverage options for vulnerable populations in the state.

Contention

Notable points of contention surrounding S1189 include concerns from some stakeholders about the potential for reduced insurance options and competition. Critics may argue that the restrictions placed on carriers could lead to a decrease in the number of insurance providers willing to operate in New Jersey, thus limiting consumer choice. There are also questions about how this bill might affect the overall costs of insurance for small employers and individuals, potentially leading to higher premiums if fewer carriers are left in the market. These discussions highlight the balance lawmakers must achieve between ensuring sufficient coverage and fostering a competitive insurance environment.