New Jersey Assembly Bill A3134

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Permits reimbursement of COBRA health benefit costs of survivors of certain deceased public safety employees; appropriates $750,000.

Impact

The bill appropriates $750,000 from the General Fund to support the reimbursement process, and it provides a structured method for eligible dependents to receive these funds. To qualify, dependents must submit an application to the State Treasurer by March 1 of each year detailing their incurred COBRA costs from the previous calendar year's first six months. The legislation also stipulates that if the total claims surpass the allocated funding, reimbursements will be made on a pro rata basis, ensuring an equitable distribution of available resources among qualifying applicants.

Summary

Assembly Bill A3134 is aimed at addressing the financial burden associated with COBRA health insurance continuation for the dependents of certain deceased public safety employees. The bill allows the surviving dependents—namely spouses and unmarried children—of public safety employees who have died while on duty or within a limited period post-duty to apply for reimbursement of their COBRA costs for the first six months. This legislative measure specifically targets individuals covered under the New Jersey State Health Benefits Program or through their deceased public safety employee's employer prior to their passing.

Contention

One notable point of contention surrounding this bill is the potential impact on the eligibility of dependents for COBRA coverage. Earlier versions raised concerns that mandating employers to maintain coverage for six months following an employee's death might disqualify dependents from obtaining the COBRA provisions altogether. This concern has been addressed by ensuring that the bill does not interfere with the existing COBRA coverage term of 36 months that dependents could utilize if desired. Nonetheless, this intersection of legislative intent and COBRA regulations continues to provoke discussion among lawmakers and stakeholders.