Bill Text: NJ A3941 | 2016-2017 | Regular Session | Introduced
Bill Title: Prohibits multiple employer coverage for health care benefits of public employee and requires payment based on employee's aggregate public income.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2016-10-21 - Reviewed by the Pension and Health Benefits Commission Rcommend to enact with modification [A3941 Detail]
Download: New_Jersey-2016-A3941-Introduced.html
Sponsored by:
Assemblyman DECLAN J. O'SCANLON, JR.
District 13 (Monmouth)
SYNOPSIS
Prohibits multiple employer coverage for health care benefits of public employee and requires payment based on employee's aggregate public income.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning eligibility for health care benefits coverage of public employee, amending P.L.1961, c.49, and supplementing various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) a. Notwithstanding any provision of any other law to the contrary, multiple coverage for health care benefits, provided pursuant to P.L.1961, c.49 (C.52:14-17.25 et seq.), P.L.2007, c.103 (C.52:14-17.46.1 et seq.), P.L.1979, c.391 (C.18A:16-12 et seq.), and N.J.S.40A:10-16 et seq., as an employee, dependent, or retiree shall be prohibited.
b. An employee who selects coverage under one plan or program:
shall not be eligible to accept payment for waiving health benefits coverage from any employer from whom the employee is ineligible to receive health benefits coverage; and
shall pay for health care benefits coverage based on the employee's aggregate compensation from all of the employee's public positions, offices, or employment.
A public employer shall take disciplinary action against any employee who does not disclose the employee's aggregate compensation. An employee who willfully fails to report aggregate compensation is guilty of a disorderly persons offense.
c. The provisions of this section shall apply also to any agency, authority, board, commission, or instrumentality of a board of education. The provisions of this section shall also apply when health care benefits coverage is provided through an insurance fund or joint insurance fund or in any other manner.
2. (New section) a. Notwithstanding any provision of any other law to the contrary, multiple coverage for health care benefits for an employee of a local unit, provided pursuant to P.L.1961, c.49 (C.52:14-17.25 et seq.), P.L.2007, c.103 (C.52:14-17.46.1 et seq.), P.L.1979, c.391 (C.18A:16-12 et seq.), and N.J.S.40A:10-16 et seq., as an employee, dependent, or retiree shall be prohibited.
b. An employee who, pursuant to subsection a. of this section, selects coverage under one plan or program:
shall not be eligible to accept payment for waiving health benefits coverage from any employer from whom the employee is ineligible to receive health benefits coverage; and
shall pay for health care benefits coverage based on the employee's aggregate compensation from all of the employee's public positions, offices, or employment.
A public employer shall take disciplinary action against any employee who does not disclose the employee's aggregate compensation. An employee who willfully fails to report aggregate compensation is guilty of a disorderly persons offense.
c. The provisions of this section shall apply to any agency, authority, board, commission, or instrumentality of a local unit. The provisions of this section shall also apply when health care benefits coverage is provided through an insurance fund or joint insurance fund or in any other manner.
3. Section 7 of P.L.1961, c.49 (C.52:14-17.31) is amended to read as follows:
7. a. 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.
b. 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.
c. 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.
d. 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.
e. 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.).
f. Notwithstanding any provision of any other law to the contrary, multiple coverage for public employer health care benefits for a public employee, provided pursuant to P.L.1961, c.49 (C.52:14-17.25 et seq.), P.L.2007, c.103 (C.52:14-17.46.1 et seq.), P.L.1979, c.391 (C.18A:16-12 et seq.), and N.J.S.40A:10-16 et seq., as an employee, dependent, or retiree shall be prohibited.
g. An employee who, pursuant to subsection f. of this section, selects coverage under one plan or program:
shall not be eligible to accept payment for waiving health benefits coverage from any employer from whom the employee is ineligible to receive health benefits coverage; and
shall pay for health care benefits coverage based on the employee's aggregate compensation from all of the employee's public positions, offices, or employment.
A public employer shall take disciplinary action against any employee who does not disclose the employee's aggregate compensation. An employee who willfully fails to report aggregate compensation is guilty of a disorderly persons offense.
h. The provisions of subsections f. and g. of this section shall apply to any agency, authority, board, commission, or instrumentality of the State and shall also apply when health care benefits coverage is provided through an insurance fund or joint insurance fund or in any other manner.
(cf: P.L.2010, c.2, s.12)
4. This act shall take
effect on the 90th day after the day of enactment and shall apply to
all public employees employed on or after that effective date, but shall not be
deemed to impair the obligations in a collective negotiations agreement in
effect on that date.
STATEMENT
This bill would limit a public employee of the State, a local government, or a local board of education, or agency or authority board, commission, or instrumentality thereof, to receiving health care benefits coverage from only one public employer if the employee holds more than one public position.
The bill provides that an employee who selects coverage under one plan or program must pay for health care benefits coverage based on the employee's aggregate compensation from all of the employee's public positions, offices, or employment.
An employer is required to take disciplinary action against any employee who does not disclose the employee's aggregate compensation. An employee who willfully fails to report aggregate compensation will be guilty of a disorderly persons offense. Such an offense is punishable by up to six months imprisonment or a fine of up to $1,000, or both.
In addition, the bill prohibits such a public employee from receiving payment for waiving health care benefits coverage from any public employer from whom the employee is ineligible to receive coverage.
