ASSEMBLY, No. 1771

STATE OF NEW JERSEY

212th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2006 SESSION

 


 

Sponsored by:

Assemblyman LOUIS D. GREENWALD

District 6 (Camden)

Assemblywoman BONNIE WATSON COLEMAN

District 15 (Mercer)

Assemblyman NEIL M. COHEN

District 20 (Union)

 

Co-Sponsored by:

Assemblymen Gordon, Prieto and Assemblywoman Voss

 

 

 

 

SYNOPSIS

     Allocates certain excess surplus of health service corporations to hospitals for charity care subsidies.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel

  


An Act concerning certain surplus revenue of a health service corporation and supplementing P.L.1985, c.236 (C.17:48E-1 et seq.).

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.  For purposes of this act:

     "Commissioner" means the Commissioner of Banking and Insurance.

     "Special contingent surplus" shall have the same meaning as "surplus" in applying the requirements set forth in sections 2 through 4 of P.L.1993, c.235 (C.17B:18-68 through C.17B:18-70).

 

     2.  a.  On or after December 31, 2003, and annually thereafter, whenever the commissioner deems that the special contingent surplus of a health service corporation for its group and other activities, excluding special contingent surplus for individual contracts, exceeds the requirements set forth in sections 2 through 4 of P.L.1993, c.235 (C.17B:18-68 through C.17B:18-70), and the regulations promulgated thereunder, and whenever special contingent surplus in excess of those requirements exists, the excess special contingent surplus for its group and other activities shall be allocated annually to the Health Care Subsidy Fund established pursuant to section 8 of P.L.1992, c.160 (C.26:2H-18.58) for the purpose of providing charity care payments to hospitals in accordance with the formula used for the distribution of charity care subsidies that are provided pursuant to P.L.1992, c.160 (C.26:2H-18.51 et al.).

     b.  The provisions of this section shall not apply and shall be suspended if the commissioner determines that the health service corporation is in an unsafe or unsound financial condition.

 

     3.  The commissioner shall promulgate rules and regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) necessary to effectuate the provisions of this act.

 

     4.  This act shall take effect immediately.

 

 

STATEMENT

 

     This bill establishes a procedure whereby a portion of certain special contingent surplus monies accumulated by Horizon Blue Cross and Blue Shield of New Jersey (Horizon) are allocated annually for the purpose of providing payments to hospitals for charity care subsidies.

     Specifically, the bill provides that, on or after December 31, 2003, and annually thereafter, whenever the Commissioner of Banking and Insurance deems that Horizon's special contingent surplus for its group and other activities, excluding special contingent surplus for individual contracts, exceeds the capital and surplus financial requirements established pursuant to P.L.1993, c.235 (C.17B:18-68 et seq.), and whenever special contingent surplus in excess of those requirements exists, the excess shall be allocated annually to the Health Care Subsidy Fund for the purpose of providing charity care payments to hospitals in accordance with the formula used for the distribution of charity care subsidies.

     The bill also provides, however, that its provisions would not apply and would be suspended, if the commissioner determines that the health service corporation is in an unsafe or unsound financial condition.