New Jersey Assembly Bill A3383

New Jersey 2024-2025 Regular Session

• Introduced: 2/1/24
• Refer: 2/1/24

Caption

Establishes grant program in Department of Treasury for certain employers affected by winding down of Affiliated Physicians and Employers Master Trust; makes appropriation.

Impact

This legislative proposal is designed to alleviate the financial burden on about 2,500 physician practices and small businesses that depended on the benefits provided by the Master Trust. By allowing these employers to receive grants equivalent to the amount of their required assessments, the bill intends to stabilize these organizations, helping them continue to operate in a challenging economic environment. The funding will be sourced from federal government assistance allocated to counteract the pandemic's impact.

Summary

Bill A3383 seeks to establish a grant program within the New Jersey Department of Treasury aimed at providing financial assistance to specific employers adversely affected by the winding down of the Affiliated Physicians and Employers Master Trust during the fiscal constraints imposed by the COVID-19 pandemic. The bill ensures that eligible employers can apply for grants to cover the assessments they were required to pay due to liabilities stemming from the trust's bankruptcy, which occurred in May 2021.

Contention

Concerns may arise regarding the source of funding for the grant program, particularly in terms of the sustainability and adequacy of federal assistance in the long run. Moreover, there may be discussions relating to the effectiveness of such financial support in genuinely aiding small employers versus potentially creating dependency on state assistance. The time restriction on grant applications, which concludes 24 months following the act's effective date, may also kindle debate about whether this is a sufficient window for affected employers to respond and apply.