This bill amends the current law regarding the annual assessment on net written premiums of health maintenance organizations (HMOs) in New Jersey. Specifically, it increases the assessment from five percent to six percent, effective for fiscal year 2025 and thereafter. The bill outlines a schedule of assessments that includes a one percent special interim assessment for fiscal years 2005 and 2006, followed by a two percent assessment for fiscal year 2007 through 2019, a three percent assessment for fiscal year 2020, and the previously mentioned five percent for fiscal year 2021 through 2024.

The funds collected from this increased assessment will be allocated to the Health Care Subsidy Fund, which is designated for providing charity care payments to hospitals. The bill is expected to generate an additional $83 million in gross revenue for the fund, as estimated by the Department of the Treasury, and aligns with the Governor's Fiscal Year 2025 budget recommendations. Additionally, the bill prohibits HMOs from imposing any additional charges to recoup the assessment costs, except for federally funded programs.

Statutes affected:
Introduced: 26:2J-47