SENATE, No. 3851 STATE OF NEW JERSEY 221st LEGISLATURE INTRODUCED OCTOBER 28, 2024
SENATE, No. 3851
STATE OF NEW JERSEY
221st LEGISLATURE
INTRODUCED OCTOBER 28, 2024
Sponsored by: Senator NICHOLAS P. SCUTARI District 22 (Somerset and Union) SYNOPSIS Requires Division of Pensions and Benefits to provide report on available funds in local government part of SHBP prior to transferring funds from State part of SHBP; requires monthly reporting on certain assets in SHBP. CURRENT VERSION OF TEXT As introduced.
Sponsored by:
Senator NICHOLAS P. SCUTARI
District 22 (Somerset and Union)
SYNOPSIS
Requires Division of Pensions and Benefits to provide report on available funds in local government part of SHBP prior to transferring funds from State part of SHBP; requires monthly reporting on certain assets in SHBP.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the State Health Benefits Program and amending P.L , c. (pending before the Legislature as Assembly Bill No. A4999 or Senate Bill No. 3838 of 2024/2025). Be It Enacted by the Senate and General Assembly of the State of New Jersey: 1. Section 2 of P.L. , c. (C. ) (pending before the Legislature as Assembly Bill No. A4999 or Senate Bill No. 3838 of 2024/2025) is amended to read as follows: 2. a. If the available funds in the health benefits funds established pursuant to sections 10 and 11 of P.L.1964, c.125 (C.52:14-17.41 and C.52:14-17.42) fall to a level that is insufficient to cover 10 days of anticipated payments from the fund, including, but not limited to, any portion of premiums, claims, and other periodic charges, provided that claims for medical, prescription, and dental expenses are based on an average over the past six months, then the Director of the Division of Pensions and Benefits may initiate a temporary transfer of available funds from the health benefits fund established pursuant to section 6 of P.L.1961, c.49 (C.52:14-17.30) to the health benefits funds established pursuant to sections 10 and 11 of P.L.1964, c.125 (C.52:14-17.41 and 52:14-17.42). The Director of the Division of Pensions and Benefits shall notify the commission within [30] five days of the transfer, and shall provide a report of claims payable, available fund balance, and anticipated premiums for the health benefits funds established pursuant to sections 10 and 11 of P.L.1964, c.125 (C.52:14-17.41 and 52:14-17.42) prior to the transfer. The report shall also include categorized data for active and retired employees. The amount transferred pursuant to this subsection shall not exceed the amount necessary to cover 30 days of anticipated payments from the fund, including, but not limited to, any portion of premiums, claims, and other periodic charges, provided that claims for medical, prescription, and dental expenses are based on an average over the past six months and any other anticipated payment or charge in the next 30 days. The amount transferred pursuant to this subsection shall be reimbursed from the health benefits fund established pursuant to section 11 of P.L.1964, c.125 (C.52:14-17.42) on or before the 120th day next following the date of the transfer unless the Director of the Division of Pensions and Benefits determines that an extension of the reimbursement date is necessary to ensure that sufficient funding is available to pay claims incurred by employees of employers other than the State and their dependents; provided, however, in no case shall the reimbursement date be extended for more than an additional 365 days. b. The Director of the Division of Pensions and Benefits shall provide to the State Treasurer a monthly accounting of any transfers initiated in the prior 30 days pursuant to subsection a. of this section, the outstanding balances of all transfers initiated pursuant to subsection a. of this section, any repayments for past transfers received, and the current balance of the health benefits fund established pursuant to section 11 of P.L.1964, c.125 (C.52:14-17.42). c. Beginning 30 days following the effective date of this act, P.L. , c. (pending before the Legislature as this bill), the Division of Pensions and Benefits shall provide monthly reports on the available funds for the health benefits fund established pursuant to section 6 of P.L.1961, c.49 (C.52:14-17.30) and the health benefits funds established pursuant to sections 10 and 11 of P.L.1964, c.125 (C.52:14-17.41 and 52:14-17.42) to the commission, including cash balances, claims costs incurred, and premiums collected. (cf: P.L. , c. , s.2 (pending before the Legislature as Assembly Bill No. A4999 or Senate Bill No. 3838 of 2024/2025)) 2. This act shall take effect immediately. STATEMENT This bill would make amendments to provisions of law adopted by Assembly Bill No. A4999 or Senate Bill No. 3838 of 2024/2025. This bill would require the Division of Pensions and Benefits to report to the State Health Benefits Commission (SHBC) on the claims payable, available fund balance, and anticipated premiums for the local part of the State Health Benefits Program (SHBP) prior to transferring funds from the State part of SHBP to such local parts. Beginning 30 days after the effective date of the bill, the division would also be required to report to the SHBC, on a monthly basis, the funds available in both the State and local parts of SHBP, including cash balances, claims costs incurred, and premiums collected.
An Act concerning the State Health Benefits Program and amending P.L , c. (pending before the Legislature as Assembly Bill No. A4999 or Senate Bill No. 3838 of 2024/2025).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of P.L. , c. (C. ) (pending before the Legislature as Assembly Bill No. A4999 or Senate Bill No. 3838 of 2024/2025) is amended to read as follows:
2. a. If the available funds in the health benefits funds established pursuant to sections 10 and 11 of P.L.1964, c.125 (C.52:14-17.41 and C.52:14-17.42) fall to a level that is insufficient to cover 10 days of anticipated payments from the fund, including, but not limited to, any portion of premiums, claims, and other periodic charges, provided that claims for medical, prescription, and dental expenses are based on an average over the past six months, then the Director of the Division of Pensions and Benefits may initiate a temporary transfer of available funds from the health benefits fund established pursuant to section 6 of P.L.1961, c.49 (C.52:14-17.30) to the health benefits funds established pursuant to sections 10 and 11 of P.L.1964, c.125 (C.52:14-17.41 and 52:14-17.42). The Director of the Division of Pensions and Benefits shall notify the commission within [30] five days of the transfer, and shall provide a report of claims payable, available fund balance, and anticipated premiums for the health benefits funds established pursuant to sections 10 and 11 of P.L.1964, c.125 (C.52:14-17.41 and 52:14-17.42) prior to the transfer. The report shall also include categorized data for active and retired employees. The amount transferred pursuant to this subsection shall not exceed the amount necessary to cover 30 days of anticipated payments from the fund, including, but not limited to, any portion of premiums, claims, and other periodic charges, provided that claims for medical, prescription, and dental expenses are based on an average over the past six months and any other anticipated payment or charge in the next 30 days. The amount transferred pursuant to this subsection shall be reimbursed from the health benefits fund established pursuant to section 11 of P.L.1964, c.125 (C.52:14-17.42) on or before the 120th day next following the date of the transfer unless the Director of the Division of Pensions and Benefits determines that an extension of the reimbursement date is necessary to ensure that sufficient funding is available to pay claims incurred by employees of employers other than the State and their dependents; provided, however, in no case shall the reimbursement date be extended for more than an additional 365 days.
b. The Director of the Division of Pensions and Benefits shall provide to the State Treasurer a monthly accounting of any transfers initiated in the prior 30 days pursuant to subsection a. of this section, the outstanding balances of all transfers initiated pursuant to subsection a. of this section, any repayments for past transfers received, and the current balance of the health benefits fund established pursuant to section 11 of P.L.1964, c.125 (C.52:14-17.42).
c. Beginning 30 days following the effective date of this act, P.L. , c. (pending before the Legislature as this bill), the Division of Pensions and Benefits shall provide monthly reports on the available funds for the health benefits fund established pursuant to section 6 of P.L.1961, c.49 (C.52:14-17.30) and the health benefits funds established pursuant to sections 10 and 11 of P.L.1964, c.125 (C.52:14-17.41 and 52:14-17.42) to the commission, including cash balances, claims costs incurred, and premiums collected.
(cf: P.L. , c. , s.2 (pending before the Legislature as Assembly Bill No. A4999 or Senate Bill No. 3838 of 2024/2025))
2. This act shall take effect immediately.
STATEMENT
This bill would make amendments to provisions of law adopted by Assembly Bill No. A4999 or Senate Bill No. 3838 of 2024/2025.
This bill would require the Division of Pensions and Benefits to report to the State Health Benefits Commission (SHBC) on the claims payable, available fund balance, and anticipated premiums for the local part of the State Health Benefits Program (SHBP) prior to transferring funds from the State part of SHBP to such local parts.
Beginning 30 days after the effective date of the bill, the division would also be required to report to the SHBC, on a monthly basis, the funds available in both the State and local parts of SHBP, including cash balances, claims costs incurred, and premiums collected.