Vote Smart's Synopsis:

Vote to pass a bill that establishes a state health reinsurance plan to control the costs of healthcare premiums.

Highlights:

• Establishes the Health Insurance Premium Security Plan, to be administered by the Commissioner of Banking and Insurance and the board of directors of the New Jersey Individual Health Coverage Program (Sec. 4).

• Authorizes the board or commissioner to apply for any federal funding for the plan, and all funds received pursuant to an application for federal funding, assessed by the board, or otherwise dedicated to the fund, must be remitted to the state treasurer and deposited into the fund (Sec. 4).

• Requires the commissioner, in consultation with the board, to collect data from carriers necessary to determine the reinsurance payment parameters and will share this data with the board (Sec. 4).

• Requires the board to notify carriers, the commissioner, and the state treasurer, for each applicable benefit year, of the reinsurance payments to be made no later than June 30 of the year following the applicable benefit year (Sec. 4).

• Requires the board to provide each eligible carrier and the commissioner with the calculation of total reinsurance payment requests on a quarterly basis during the applicable benefit year (Sec. 4).

• Requires the board, subject to the disapproval of the commissioner, to design and adjust the payment parameters to ensure that they (Sec. 4):

• Will stabilize or reduce premium rates in the individual market by achieving between 10 and 20 percent reduction in what indicated premium rates would be for the applicable benefit year without the plan;

• Will encourage increased participation in the individual market;

• Mitigate the impact high-risk individuals have on the premium rates in the individual market;

• Take into account any federal funding available for the plan;

• Take into account the total amount available to fund the plan; and 

• Encourage cost-saving mechanisms related to the management of healthcare services. 

• Defines “carrier” as any entity subject to the insurance laws and regulations of the state, or subject to the jurisdiction of the commissioner, that contracts or offers to contract to provide, deliver, arrange, pay for, or reimburse any of the costs of healthcare services under a health benefits plan, including a sickness and accident insurance company, a health maintenance organization, a hospital, medical or health service corporation, or any other entity providing a health benefits plan (Sec. 3).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes a state health reinsurance plan to control the costs of healthcare premiums.

Highlights:

• Establishes the Health Insurance Premium Security Plan, to be administered by the Commissioner of Banking and Insurance and the board of directors of the New Jersey Individual Health Coverage Program (Sec. 4).

• Authorizes the board or commissioner to apply for any federal funding for the plan, and all funds received pursuant to an application for federal funding, assessed by the board, or otherwise dedicated to the fund, must be remitted to the state treasurer and deposited into the fund (Sec. 4).

• Requires the commissioner, in consultation with the board, to collect data from carriers necessary to determine the reinsurance payment parameters and will share this data with the board (Sec. 4).

• Requires the board to notify carriers, the commissioner, and the state treasurer, for each applicable benefit year, of the reinsurance payments to be made no later than June 30 of the year following the applicable benefit year (Sec. 4).

• Requires the board to provide each eligible carrier and the commissioner with the calculation of total reinsurance payment requests on a quarterly basis during the applicable benefit year (Sec. 4).

• Requires the board, subject to the disapproval of the commissioner, to design and adjust the payment parameters to ensure that they (Sec. 4):

• Will stabilize or reduce premium rates in the individual market by achieving between 10 and 20 percent reduction in what indicated premium rates would be for the applicable benefit year without the plan;

• Will encourage increased participation in the individual market;

• Mitigate the impact high-risk individuals have on the premium rates in the individual market;

• Take into account any federal funding available for the plan;

• Take into account the total amount available to fund the plan; and 

• Encourage cost-saving mechanisms related to the management of healthcare services. 

• Defines “carrier” as any entity subject to the insurance laws and regulations of the state, or subject to the jurisdiction of the commissioner, that contracts or offers to contract to provide, deliver, arrange, pay for, or reimburse any of the costs of healthcare services under a health benefits plan, including a sickness and accident insurance company, a health maintenance organization, a hospital, medical or health service corporation, or any other entity providing a health benefits plan (Sec. 3).

Full Bill Text