Sponsored by:
Senator JOSEPH F. VITALE
District 19 (Middlesex)
Senator NELLIE POU
District 35 (Bergen and Passaic)
SYNOPSIS
The Small Business Health Insurance Affordability Act; revises certain requirements for individual and small employer health benefits plans.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning small employer and individual health benefits plans, amending P.L.1992, c.161 and P.L.1992, c.162, and supplementing various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.1992, c.161 (C.17B:27A-4) is amended to read as follows:
3. a. [No later than 180 days after the effective date of this section of P.L.2008, c.38, a carrier shall, as a condition of issuing small employer health benefits plans in this State, also offer individual health benefits plans. The plans shall be offered on an open enrollment, modified community rated basis, pursuant to the provisions of this act and P.L.2008, c.38. Every carrier that issues small employer health benefits plans pursuant to P.L.1992, c.162 (C.17B:27A-17 et seq.) shall make a good faith effort to market individual health benefits plans.] (Deleted by amendment, P.L. , c. (pending before the Legislature as this bill).
b. A carrier shall offer to an eligible person a choice of at least three individual health benefits plans established by the board pursuant to section 6 of P.L.1992, c.161 (C.17B:27A-7).
c. (1) (Deleted by amendment, P.L.2019, c.359).
(2) (Deleted by amendment, P.L.2019, c.359).
(3) (Deleted by amendment, P.L.2019, c.359).
(4) (Deleted by amendment, P.L.2019, c.359).
(5) The provisions of section 13 of P.L.1985, c.236 (C.17:48E-13), N.J.S.17B:26-1, and section 8 of P.L.1973, c.337 (C.26:2J-8) with respect to the filing of policy forms shall not apply to health plans issued on or after the effective date of [this act] P.L.1992, c.161 (C.17B:27A-2 et al.).
(6) The provisions of section 27 of P.L.1985, c.236 (C.17:48E-27) and section 7 of P.L.1988, c.71 (C.17:48E-27.1) with respect to rate filings shall not apply to individual health plans issued on or after the effective date of [this act] P.L.1992, c.161 (C.17B:27A-2 et al.).
d. Every group conversion contract or policy issued after the effective date of [this act] P.L.1992, c.161 (C.17B:27A-2 et al.) shall be issued pursuant to this section; except that this requirement shall not apply to any group conversion contract or policy in which a portion of the premium is chargeable to, or subsidized by, the group policy from which the conversion is made.
e. (Deleted by amendment, P.L.2008, c.38).
f. (Deleted by amendment, P.L.2019, c.359).
(cf: P.L.2019, c.359, s.2)
2. Section 5 of P.L.1992, c.161 (C.17B:27A-6) is amended to read as follows:
5. An individual health benefits plan issued pursuant to section 3 of [this act] P.L.1992, c.161 (C.17B:27A-4) is subject to the following provisions:
a. The health benefits plan shall guarantee coverage for an eligible person and his dependents on a modified community rated basis.
b. A health benefits plan shall be renewable with respect to an eligible person and his dependents at the option of the policy or contract holder. A carrier may terminate a health benefits plan under the following circumstances:
(1) the policy or contract holder has failed to pay premiums in accordance with the terms of the policy or contract or the carrier has not received timely premium payments;
(2) the policy or contract holder has performed an act or practice that constitutes fraud or made an intentional misrepresentation of material fact under the terms of the coverage.
c. A carrier may not renew a health benefits plan only under the following circumstances:
(1) termination of eligibility of the policy or contract holder if the person is no longer a resident or becomes eligible for a group health benefits plan, group health plan, governmental plan or church plan;
(2) cancellation or amendment by the board of the specific individual health benefits plan;
(3) approval by the commissioner of a request by the individual carrier to not renew a particular type of health benefits plan, in accordance with rules adopted by the commissioner. After receiving approval by the commissioner, a carrier may not renew a type of health benefits plan only if the carrier: (a) provides notice to each covered individual provided coverage of this type of the nonrenewal at least 90 days prior to the date of the nonrenewal of the coverage; (b) offers to each individual provided coverage of this type the option to purchase any other individual health benefits plan currently being offered by the carrier; and (c) in exercising the option to not renew coverage of this type and in offering coverage as required under (b) above, the carrier acts uniformly without regard to any health status-related factor of enrolled individuals or individuals who may become eligible for coverage;
(4) approval by the commissioner of a request by the individual carrier to cease doing business in the individual health benefits market. A carrier may not renew all individual health benefits plans only if the carrier: (a) first receives approval from the commissioner; and (b) provides notice to each individual of the nonrenewal at least 180 days prior to the date of the expiration of such coverage[. A carrier ceasing to do business in the individual health benefits market may not provide for the issuance of any health benefits plan in the individual or small employer markets during the five-year period beginning on the date of the termination of the last health benefits plan not so renewed]; and
(5) In the case of a health benefits plan made available by a health maintenance organization carrier, the carrier shall not be required to renew coverage to an eligible individual who no longer resides, lives, or works in the service area, or in an area for which the carrier is authorized to do business, but only if coverage is terminated under this paragraph uniformly without regard to any health status-