This bill amends the State Health Benefits Program to allow the Director of the Division of Pensions and Benefits to initiate a temporary transfer of funds from the health benefits fund to the dependents premium fund and employer health benefits fund when the available funds in the latter fall below a level sufficient to cover 10 days of anticipated payments. The transfer amount cannot exceed what is necessary to cover 30 days of anticipated payments, and the Director must notify the State Health Benefits Commission within 30 days of any transfer. Additionally, the bill stipulates that the transferred amount, along with accrued interest, must be reimbursed within 120 days, with a possible extension of up to 365 days if necessary.

The bill also includes a new provision that prohibits the use of assets in a dedicated subaccount for purposes other than providing benefits under the State Health Benefits Program, except as permitted by this bill. This aims to ensure that funds are used appropriately for health services and prescription drug benefits for covered State employees and their dependents. The Director is required to provide monthly accounting to the State Treasurer regarding any transfers, outstanding balances, repayments, and the current balance of the employer health benefits fund.

Statutes affected:
Introduced: 52:14-17.30