New Jersey Senate Bill S3896

New Jersey 2022-2023 Regular Session

• Introduced: 5/22/23
• Refer: 5/22/23

Caption

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

Impact

The implementation of S3896 will significantly affect the regulatory framework governing health insurance in New Jersey. It obligates the Commissioner of Banking and Insurance to establish additional regulations regarding the assessment of rates for individual and small employer health benefits plans. Key factors will be evaluated in determining appropriate rates, including compliance with federal risk pooling requirements and the design of covered benefits. This added scrutiny is aimed at ensuring that rate changes reflect the true cost of providing health insurance while considering factors such as consumer purchasing power and the potential for premium subsidies under the ACA.

Summary

Bill S3896, introduced in New Jersey, aims to impose certain rate filing requirements on health benefits plans available through the State-based exchange, known as 'Get Covered NJ'. This legislative initiative requires health insurance carriers to adhere to the ACA's single-risk-pool rule, mandating that plans be priced based on the projected utilization of the identical population across the market risk pool. Moreover, the bill stipulates that the cost of silver and gold level plans should align more closely with their actuarial values, intending to promote fairness and transparency in pricing for consumers.

Contention

Potential points of contention around Bill S3896 may arise concerning the balance between regulating insurance rates and ensuring that consumers have access to affordable health care options. Some stakeholders might argue that while the intent of the bill is to enhance consumer protections, it could also lead to increased costs for carriers, which might then be passed on to consumers in the form of higher premiums. Furthermore, the requirement for carriers to offer plans at both gold and silver levels in a given area may generate discussions regarding market dynamics and competition among insurers.