Establishes loan program in Department of Treasury for certain entities offering health benefits plans; makes appropriation.
Impact
The bill outlines that loans made through this program will bear no interest or associated fees, relieving the financial burden on applicants. Furthermore, the loans are capped at the amount deemed necessary for a health benefit entity to avert insolvency, as determined by the State Treasurer. The provision for loan forgiveness or extension of the repayment term underscores the state's commitment to stabilizing these health plans amidst ongoing fiscal challenges, reflecting a proactive approach to sustain health care access for New Jersey residents. The bill stipulates that no loans will be awarded after nine months from its effective date, aiming for rapid deployment of financial assistance.
Summary
Senate Bill S1300 establishes a loan program within the New Jersey Department of Treasury aimed at supporting entities that offer health benefits plans and are facing insolvency due to the financial impacts of the COVID-19 pandemic. This bill comes in response to the significant strain that the pandemic has placed on health plans, particularly those experiencing a surge in catastrophic claims or difficulties related to premium thresholds. The program's primary function is to evaluate applications from these entities and provide loans that are necessary to prevent insolvency, ensuring that they can continue to serve their beneficiaries during these challenging times.
Contention
While the intention of SB S1300 is clear and aimed at providing immediate relief, discussions around the bill may reveal contention regarding its long-term implications. Concerns may arise about the state's ongoing fiscal responsibilities and how the appropriated funds from the General Fund will affect other exiting programs. Opposition viewpoints could express skepticism regarding the sustainability of such an infusion of funds, especially given uncertainties surrounding the post-pandemic landscape in health care. Stakeholders may question whether this program is an adequate stop-gap measure or if it opens the door to further financial dependencies for health benefit organizations.
Establishes grant program in Department of Treasury for certain employers affected by winding down of Affiliated Physicians and Employers Master Trust; makes appropriation.
Establishes grant program in Department of Treasury for certain employers affected by winding down of Affiliated Physicians and Employers Master Trust; makes appropriation.
Establishes grant program in Department of the Treasury for certain employers affected by winding down of Affiliated Physicians and Employers Master Trust; establishes "Self-Funded Multiple Employer Welfare Arrangement Security Fund."