This bill amends Section 3 of P.L.2004, c.49 (C.26:2J-47) to establish a tiered annual assessment on health maintenance organizations (HMOs) based on their net written premiums. For fiscal years 2005 and 2006, a special interim assessment of one percent will be applied, followed by a two percent assessment for fiscal year 2007 through 2019. The assessment will increase to three percent in fiscal year 2020, five percent from fiscal year 2021 through 2024, and six percent starting in fiscal year 2025 and thereafter. The funds collected will be allocated to the Health Care Subsidy Fund to support charity care payments to hospitals.

Additionally, the bill stipulates that HMOs cannot impose any additional premiums, fees, or surcharges on their enrollees to recover the costs of the assessments, with an exception for federally funded programs. The bill is set to take effect immediately and will apply to assessments starting in Fiscal Year 2025.

Statutes affected:
Introduced: 26:2J-47
Pamphlet Law: 26:2J-47