Bill Text: NJ A111 | 2020-2021 | Regular Session | Introduced
Bill Title: Requires election by certain public employees of certain health care benefit plans; prohibits payments by public employers for waiver of such plans.
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Introduced - Dead) 2020-01-14 - Introduced, Referred to Assembly State and Local Government Committee [A111 Detail]
Download: New_Jersey-2020-A111-Introduced.html
STATE OF NEW JERSEY
219th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2020 SESSION
Sponsored by:
Assemblyman CHRISTOPHER P. DEPHILLIPS
District 40 (Bergen, Essex, Morris and Passaic)
Assemblyman JON M. BRAMNICK
District 21 (Morris, Somerset and Union)
Assemblyman CRAIG J. COUGHLIN
District 19 (Middlesex)
Co-Sponsored by:
Assemblywoman B.DeCroce
SYNOPSIS
Requires election by certain public employees of certain health care benefit plans; prohibits payments by public employers for waiver of such plans.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning coverage under health care benefit plans for public employees, amending various parts of the statutory law, and supplementing P.L.1961, c.49 (C.52:14-17.25 et seq.), and chapter 16 of Title 18A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.1979, c.391 (C.18A:16-14) is amended to read as follows:
3. The contract shall exclude from eligibility:
a. Employees and dependents, active or retired, who are otherwise eligible for coverage but who, although they meet the age eligibility requirement of the Federal Medicare Program, are not covered by the complete Federal program;
b. Any class or classes of employees who are eligible for like or similar coverage under another group contract covering such class or classes of employees.
c. Commencing on the effective date of P.L. , c. (pending before the Legislature as this bill) or upon the expiration of a collective negotiations agreement with a relevant provision in effect as of that effective date, if an employee of a local board of education and the employee's spouse are both public employees and eligible for health care benefits coverage provided by each public employer, the employee with the highest annual compensation shall select coverage with the employer, provided that the employer provides coverage for dependents, and the employee's spouse shall not be eligible for health care benefits coverage provided by the public employer of the spouse. This paragraph shall apply also when the health care benefits coverage is provided through an insurance fund or joint insurance fund or in any other manner. This paragraph shall apply to any agency, board, commission, authority, or instrumentality of a local board of education.
(cf: P.L.1979, c.391, s.3)
2. Section 37 of P.L.1995, c.259 (C.40A:10-17.1) is amended to read as follows:
37. Notwithstanding the
provisions of any other law to the contrary, a county, municipality or any
contracting unit as defined in section 2 of P.L.1971, c.198 (C.40A:11-2) which
enters into a contract providing group health care benefits to its employees
pursuant to N.J.S.40A:10-16 et seq., may allow any employee who is eligible for
other health care coverage, to waive coverage under the county's,
municipality's or contracting unit's plan to which the employee is entitled by
virtue of employment with the county,
municipality or contracting unit. The waiver shall be in such form as the county, municipality or contracting unit shall prescribe and shall be filed with the county, municipality or contracting unit. In consideration of filing such a waiver, a county, municipality or contracting unit may pay to the employee annually an amount, to be established in the sole discretion of the county, municipality or contracting unit, which shall not exceed 50% of the amount saved by the county, municipality or contracting unit because of the employee's waiver of coverage, and, for a waiver filed on or after the effective date of P.L.2010, c.2, which shall not exceed 25%, or $5,000, whichever is less, of the amount saved by the county, municipality or contracting unit because of the employee's waiver of coverage. An employee who waives coverage shall be permitted to resume coverage under the same terms and conditions as apply to initial coverage if the employee ceases to be covered through the employee's spouse for any reason, including, but not limited to, the retirement or death of the spouse or divorce. An employee who resumes coverage shall repay, on a pro rata basis, any amount received which represents an advance payment for a period of time during which coverage is resumed. An employee who wishes to resume coverage shall file a declaration with the county, municipality or contracting unit, in such form as the county, municipality or contracting unit shall prescribe, that the waiver is revoked. The decision of a county, municipality or contracting unit to allow its employees to waive coverage and the amount of consideration to be paid therefor shall not be subject to the collective bargaining process.
Commencing on the effective date of P.L. , c. (pending before the Legislature as this bill) or upon the expiration of a collective negotiations agreement with a relevant provision in effect as of that effective date, if an employee of a county, municipality, or any contracting unit and the employee's spouse are both public employees and eligible for health care benefits coverage provided by each public employer, the employee with the highest annual compensation shall select coverage with the employer, provided that the employer provides coverage for dependents, and the employee's spouse shall not be eligible for health care benefits coverage provided by the public employer of the spouse. This paragraph shall apply also when the health care benefits coverage is provided through an insurance fund or joint insurance fund or in any other manner. This paragraph shall apply to any agency, board, commission, authority, or instrumentality of a county, municipality, or any contracting unit.
(cf: P.L.2010, c.2, s.18)
3. Section 7 of P.L.1961, c.49 (C.52:14-17.31) is amended to read as follows:
7. The coverage provided solely for employees shall, subject to the provisions below, automatically become effective for all eligible employees from the first day on or after the effective date of the program on which they satisfy the definition of "employee" contained in this act. The commission shall establish the rules and regulations governing the enrollment and effective dates of coverage of dependents of employees it deems necessary or desirable. The rules and regulations shall not defer coverage with respect to any qualified dependent an employee has on the date the employee's employer becomes a participating employer, provided the employee was, immediately prior to the date, insured with respect to the dependent under a group insurance plan of the employer which was in effect immediately prior to the date. Under the rules and regulations established by the commission, each employee shall be given the opportunity to enroll for coverage for dependents as of the earliest date the employee becomes eligible for enrollment. With respect to the traditional plan, an employee may elect to enroll dependents for both basic coverage and major medical expense coverage but may not enroll for either coverage alone.
In the event that the group health plan which covered an employee or dependents immediately prior to the date the employee's employer becomes a participating employer provides, after termination of coverage thereunder, any continuation of benefits, or would so provide in the absence of coverage pursuant to this act, no coverage shall be afforded pursuant to this act for any such expenses (i) which are covered, or which would be covered in the absence of coverage pursuant to this act, in whole or in part, by the prior insurance plan or (ii) which may be used in satisfaction of any deductible requirement under the prior insurance plan to establish entitlement to the continuation of benefits.
Each employee shall furnish the Division of Pensions and Benefits, in the prescribed form, the information necessary on account of the employee's own coverage and necessary to enroll dependents. Any employee not desiring coverage at the time the employee first becomes eligible, shall give the division written notice of that fact in the form prescribed by the division. The employee may not enroll thereafter except at the times and under the conditions prescribed by the commission.
Any person employed as a substitute teacher by a school district and who provides evidence of coverage under another health benefits program may waive coverage for the current school year on or after the date on which the person becomes an employee eligible for coverage.
Multiple coverage in the program as an employee, dependent, or retiree shall be prohibited and the prohibition shall be implemented in accordance with the rules and regulations promulgated by the commission. The provisions of this paragraph shall be applicable to the State Health Benefits Program and to the School Employees' Health Benefits Program to the extent not inconsistent with the provisions of sections 31 through 41 of P.L.2007, c.103 (C.52:14-17.46.1 et seq.).
Commencing on the effective date of P.L. , c. (pending before the Legislature as this bill) or upon the expiration of a collective negotiations agreement with a relevant provision in effect as of that effective date, if an employee of a participating employer and the employee's spouse are both public employees and eligible for health care benefits coverage provided by each public employer, the employee with the highest annual compensation shall select coverage with the employer, provided that the employer provides coverage for dependents, and the employee's spouse shall not be eligible for health care benefits coverage provided by the public employer of the spouse. This subsection shall be applicable to the State Health Benefits Program and to the School Employees' Health Benefits Program.
(cf: P.L.2010, c.2, s.12)
4. (New section) a. Notwithstanding the provisions of any other law to the contrary, commencing on the effective date of P.L. , c. (pending before the Legislature as this bill) or upon the expiration of a collective negotiations agreement with a relevant provision in effect as of that effective date, if an employee of an independent State authority and the employee's spouse are both public employees and eligible for health care benefits coverage provided by each public employer, the employee with the highest annual compensation shall select coverage with the employer, provided that the employer provides coverage for dependents, and the employee's spouse shall not be eligible for health care benefits coverage provided by the public employer of the spouse. This section shall apply when the health care benefits coverage is provided through a health care benefits plan or program, insurance fund or joint insurance fund, or in any other manner. This subsection shall apply to a State authority that is not covered by the provisions of section 7 of P.L.1961, c.49 (C.52:14-17.31).
b. Notwithstanding the provisions of any other law to the contrary, an independent State authority which does not participate in the State Health Benefits Program shall not make payments in any form or manner to an employee who waives coverage under the health care benefits plan to which the employee is entitled by virtue of employment with the employer. The decision of an employer to allow its employees to waive coverage shall not be subject to the collective bargaining process. This subsection shall apply to a State authority that is not covered by the provisions of section 36 of P.L.1995, c.259 (C.52:14-17.31a).
c. As used in this section, "independent State authority" means a public authority, board, commission, corporation, or other agency or instrumentality of the State allocated, in but not of, a principal department of State government pursuant to Article V, Section IV, paragraph 1 of the New Jersey Constitution, or which is not subject to supervision or control by the department in which it is allocated, and a regional authority, but shall not include a college or university.
5. Section 36 of P.L.1995, c.259 (C.52:14-17.31a) is amended to read as follows:
36. a. Notwithstanding the provisions of any other law to the contrary, the State as an employer, or an employer that is an independent authority, commission, board, or instrumentality of the State which participates in the State Health Benefits Program, or an employer other than the State which participates in the State Health Benefits Program, established pursuant to P.L.1961, c.49 (C.52:14-17.25 et seq.), [may allow any employee who is eligible for other health care coverage to waive coverage under the State Health Benefits Program to which the employee is entitled by virtue of employment with the employer. The waiver shall be in such form as the Director of the Division of Pensions and Benefits shall prescribe and shall be filed with the division. After such waiver has been filed and for so long as that waiver remains in effect, no premium shall be required to be paid by the employer for the employee or the employee's dependents. Not later than the 180th day after the date on which the waiver is filed, the division shall refund to the employer the amount of any premium previously paid by the employer with respect to any period of coverage which followed the filing date.
b. Notwithstanding the provisions of any other law to the contrary, the State as an employer, or an employer that is an independent authority, commission, board, or instrumentality of the State which participates in the State Health Benefits Program, may allow any employee who is eligible for other health care coverage that is not under the State Health Benefits Program to waive the coverage under the State Health Benefits Program to which the employee is entitled by virtue of employment with the employer. The waiver shall be in such form as the Director of the Division of Pensions and Benefits shall prescribe and shall be filed with the division.
c. In consideration of filing a waiver as permitted in subsections a. and b. of this section, an employer may pay to the employee annually an amount, to be established in the sole discretion of the employer, which shall not exceed 50% of the amount saved by the employer because of the employee's waiver of coverage, and, for a waiver filed on or after the effective date of P.L.2010, c.2, which shall not exceed 25%, or $5,000, whichever is less, of the amount saved by the employer because of the employee's waiver of coverage. An employee who waives coverage shall be permitted to immediately resume coverage if the employee ceases to be eligible for other health care coverage for any reason, including, but not limited to, the retirement or death of the spouse or divorce. An employee who resumes coverage shall repay, on a pro rata basis, any amount received from the employer which represents an advance payment for a period of time during which coverage is resumed. An employee who wishes to resume coverage shall notify the employer in writing and file a declaration with the division, in such form as the director of the division shall prescribe, that the waiver is revoked.] shall not make payments in any form or manner to an employee who waives coverage under the State Health Benefits Program to which the employee is entitled by virtue of employment with the employer. The decision of an employer to allow its employees to waive coverage [and the amount of consideration to be paid therefor] shall not be subject to the collective bargaining process.
(cf: P.L.2010, c.2, s.1l)
6. Section 37 of P.L.1995, c.259 (C.40A:10-17.1) is amended to read as follows:
37. Notwithstanding the provisions of any other law to the contrary, a county, municipality or any contracting unit as defined in section 2 of P.L.1971, c.198 (C.40A:11-2) which enters into a contract providing group health care benefits to its employees pursuant to N.J.S.40A:10-16 et seq., [may allow any employee who is eligible for other health care coverage to waive coverage under the county's, municipality's or contracting unit's plan to which the employee is entitled by virtue of employment with the county, municipality or contracting unit. The waiver shall be in such form as the county, municipality or contracting unit shall prescribe and shall be filed with the county, municipality or contracting unit. In consideration of filing such a waiver, a county, municipality or contracting unit may pay to the employee annually an amount, to be established in the sole discretion of the county, municipality or contracting unit, which shall not exceed 50% of the amount saved by the county, municipality or contracting unit because of the employee's waiver of coverage, and, for a waiver filed on or after the effective date of P.L.2010, c.2, which shall not exceed 25%, or $5,000, whichever is less, of the amount saved by the county, municipality or contracting unit because of the employee's waiver of coverage. An employee who waives coverage shall be permitted to resume coverage under the same terms and conditions as apply to initial coverage if the employee ceases to be covered through the employee's spouse for any reason, including, but not limited to, the retirement or death of the spouse or divorce. An employee who resumes coverage shall repay, on a pro rata basis, any amount received which represents an advance payment for a period of time during which coverage is resumed. An employee who wishes to resume coverage shall file a declaration with the county, municipality or contracting unit, in such form as the county, municipality or contracting unit shall prescribe, that the waiver is revoked.] shall not make payments in any form or manner to any employee who waives coverage under the plan provided by the county, municipality or contracting unit to which the employee is entitled by virtue of employment with the county, municipality or contracting unit. The decision of a county, municipality or contracting unit to allow its employees to waive coverage [and the amount of consideration to be paid therefor] shall not be subject to the collective bargaining process. This section shall apply also to local authorities as defined under the "Local Authorities Fiscal Control Law," P.L.1983, c.313 (C.40A:5A-1 et seq.).
(cf: P.L.2010, c.2, s.18)
7. Section 3 of P.L.2003, c.3 (C.18A:64A-13.1) is amended to read as follows:
3. Notwithstanding the provisions of any other law to the contrary, a county college that enters into a contract providing group health care benefits to its employees [may allow any employee who is eligible for other health care coverage to waive coverage under the county college's plan to which the employee is entitled by virtue of employment with the county college. The waiver shall be in such form as the county college shall prescribe and shall be filed with the county college. In consideration of filing such a waiver, a county college may pay to the employee annually an amount, to be established in the sole discretion of the county college, which shall not exceed 50% of the amount saved by the county college because of the employee's waiver of coverage, and, for a waiver filed on or after the effective date of P.L.2010, c.2, which shall not exceed 25%, or $5,000, whichever is less, of the amount saved by the county college because of the employee's waiver of coverage. An employee who waives coverage shall be permitted to resume coverage under the same terms and conditions as apply to initial coverage if the employee ceases to be covered through the other health care coverage for any reason, including, but not limited to, the retirement or death of the employee's spouse or divorce. An employee who resumes coverage shall repay, on a pro rata basis, any amount received which represents an advance payment for a period of time during which coverage is resumed. An employee who wishes to resume coverage shall file a declaration with the county college in such form as the county college shall prescribe, that the waiver is revoked.] shall not make payments in any form or manner to any employee who waives coverage under the county college's plan to which the employee is entitled by virtue of employment with the county college. The decision of a county college to allow its employees to waive coverage [and the amount of consideration to be paid therefor] shall not be subject to the collective bargaining process.
(cf: P.L.2010, c.2, s.17)
8. (New section) Notwithstanding the provisions of any other law to the contrary, a board of education which enters into a contract providing group health care benefits to its employees pursuant to P.L.1979, c.391 (C.18A:16-12 et seq.), shall not make payments in any form or manner to any employee who waives coverage under the board of education's plan to which the employee is entitled by virtue of employment with the board of education. The decision of a board of education to allow its employees to waive coverage shall not be subject to the collective bargaining process.
9. This act shall take effect on the first day of the sixth month following enactment, but shall not be deemed to impair the obligations in a collective negotiations agreement in effect on that date.
STATEMENT
Under this bill, if an employee of the State, a local government, or a local board of education, or agency or authority thereof, and the employee's spouse are both public employees and eligible for health care benefits coverage provided by each public employer, the employee with the highest annual compensation will be required to select coverage with the employer and the employee's spouse will not be eligible for health care benefits coverage provided by the public employer of the spouse
This bill also prohibits public employers from making payments in any form or manner to an employee who waives coverage under the public employer's health care benefits plan or program to which the employee is entitled by virtue of employment with the public employer. The decision of a public employer to allow its employees to waive coverage will not be subject to the collective bargaining process.
