ASSEMBLY INSURANCE COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1885

with committee amendments

STATE OF NEW JERSEY

DATED: JUNE 3, 1996

      The Assembly Insurance Committee reports favorably and with committee amendments Assembly Bill No. 1885.

      Current law places restrictions on the number of Medicaid and Medicare recipients that may be counted by carriers, including federally qualified health maintenance organizations, in determining whether they have enrolled the minimum number of non-group persons required to qualify for an exemption from assessment under the New Jersey Individual Health Coverage Program. As amended by the committee, this bill provides that for the remainder of calendar year 1996, the number of Medicaid and Medicare cost and risk lives that may be counted towards the total remains the same as under current law at 50%. For the calendar year 1997, the number of Medicaid recipients and Medicare cost and risk lives that may be counted may not exceed 67% of the total. For the calendar year 1998, the number of Medicaid recipients and Medicare cost and risk lives that may be counted may not exceed 80% of the total, and beginning with the calendar year 1999 and thereafter, the number of Medicaid recipients and Medicare cost and risk lives that may be counted may not exceed 90% of the total.