This bill amends Section 3 of P.L.2004, c.49 (C.26:2J-47) to increase the annual assessment on net written premiums of health maintenance organizations (HMOs) from five percent to six percent, effective for assessments made in Fiscal Year 2025 and thereafter. The bill outlines a schedule for annual assessments, which includes a one percent special interim assessment for fiscal years 2005 and 2006, followed by a two percent assessment for fiscal years 2007 through 2019, a three percent assessment for fiscal year 2020, and a five percent assessment for fiscal year 2021 through 2024. The new six percent rate will apply starting in fiscal year 2025.

The revenue generated from this increased assessment is allocated to the Health Care Subsidy Fund, which is designated for providing charity care payments to hospitals. The Department of the Treasury estimates that this change will result in an additional $83 million in gross revenue for the fund. The bill also includes provisions that prevent HMOs from imposing additional charges on premiums or enrollee fees to recover the costs of the assessment, with an exception for federally funded programs.

Statutes affected:
Introduced: 26:2J-47