LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 4905

STATE OF NEW JERSEY

219th LEGISLATURE

 

DATED: NOVEMBER 17, 2020

 

 

SUMMARY

 

Synopsis:

Allows health insurers to provide certain health benefit plans to local boards of education and eligible employers who do not participate in SEHBP; modifies employee contribution for New Jersey Educators Plan and its equivalent.

Type of Impact:

Local expenditure increases.

Agencies Affected:

Local boards of education and eligible local employers.

 

 

Office of Legislative Services Estimate

Fiscal Impact

Year 1 

Year 2 

Year 3 

 

Local Cost Increase

 

Indeterminate

 

 

 

 

 

·         The Office of Legislative Services (OLS) determines that there will be indeterminate increases in costs for local boards of education and eligible employers due to the reduction in contribution required of those employees who earn more than $125,000 and are enrolled in the New Jersey Educators Health Plan and its equivalent.

 

·         Under this bill, the annual contribution to be made by an employee earning more than $125,000 would be capped at the same amount that an employee earning $125,000 would pay. 

 

 

BILL DESCRIPTION

 

      This bill allows health insurance companies in this State to provide health care benefit plans that are equivalent to the New Jersey Educators Health Plan and the Garden State Health Plan offered by the School Employees’ Health Benefits Program (SEHBP) to local boards of education and other eligible employers who do not participate in the SEHBP, notwithstanding the provisions of any other law, rule, or regulation to the contrary.         

      The bill also modifies the contribution to be made by school district employees who earn more than $125,000 annually to require that they pay the same amount for the New Jersey Educators Health Plan as those who earn $125,000, rather than a percentage of salary.

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS determines that there would be indeterminate increases in costs for local boards of education and eligible employers due to the reduction in contribution for those employees who earn more than $125,000 and are enrolled in the New Jersey Educators Health Plan and its equivalent.  Under current law, the contribution by an employee earning more than $125,000 per year is a percentage of salary as follows: 3.6 percent for single coverage; 4.4 percent for parent and child coverage; 6.6 percent for employee and spouse coverage; and 7.2 percent for family coverage.  Under this bill, the contribution by an employee earning more than $125,000 would be capped at the same amount that an employee earning $125,000 would pay.

 

Section:

State Government

Analyst:

Kimberly M. Clemmensen

Lead Fiscal Analyst

 

Approved:

Thomas Koenig

Assistant Legislative Budget and Finance Officer

 

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).