NEW JERSEY - Governor Phil Murphy signed legislation Friday that will increase affordability and expand access to health care, according to officials.

The bill creates state-level subsidies to lower the cost of health insurance for residents purchasing coverage on the Marketplace this fall and restores a provision in the Affordable Care Act.

"As the federal government continues to attack critical provisions of the Affordable Care Act, our Administration remains committed to lowering the cost of coverage, expanding access to care, and improving health equity for our most vulnerable," said Murphy. "This action could not come at a more critical juncture, and will directly benefit our uninsured and underinsured populations at a time when many New Jerseyans have lost health coverage as a result of the COVID-19 pandemic."

The legislation establishes the New Jersey Health Insurer Assessment (HIA), which is a continuation of a federal assessment on health insurance companies that will sunset at the end of the year. Key notes:

"This law builds on the work we are doing to improve access to health insurance and allow more New Jerseyans to obtain affordable quality health coverage," said Department of Banking and Insurance Commissioner Marlene Caride. "These are funds that are going to be used exclusively to make health insurance more affordable. Now when the state launches its own Marketplace in the fall, we will be able to offer more financial help to our residents to improve affordability for those already covered on the Marketplace and families newly enrolling in health insurance."

The subsidy program will be available to New Jerseyans with annual income up to 400 percent of the Federal Poverty Level, which allows an individual earning up to $51,040, and a family of four earning up to $104,800, to qualify for the subsidy program. The estimated average subsidy for an individual would be at least $564 a year, and at least $2,256 a year for a family of four. Actual subsidy amounts will be based on an actuarial simulation study being conducted by the Department of Banking and Insurance in order to maximize the benefit for New Jerseyans.

The law sets the state HIA rate at 2.5 percent of net written premiums and applies it to certain fully insured health insurance markets. The assessment is expected to bring in more than $200 million in revenue starting in calendar year 2021.

"I cannot think of a more important time to help New Jersey residents and families afford coverage and access critical health care services and treatments," said Shabnam Salih, Director of the Office of Health Care Affordability and Transparency. "I want to thank Governor Murphy and Commissioner Caride for their steadfast leadership and our legislative leaders for their continued partnership and commitment to putting health care access for New Jerseyans first."

Under the law, this revenue can only be used to increase affordability in the individual market and providing greater access to the uninsured through a number of means including subsidies, reinsurance, and other efforts. An estimated $77 million will be dedicated to the reinsurance program to address high cost claims and lower premium costs in the individual market.

"This bill will help to ensure that people are able to afford health insurance during this critical time when a global disease is not only threatening their health, but their financial security in unimaginable ways," said Senator Joe Vitale, Chair of the Senate Health, Human Services and Senior Citizens Committee. "Of the many fissures exposed by COVID-19, the deficiencies in a system that relies on employer-based coverage is one that can't be ignored. These subsidies could not come at a more critical time, in the midst of a pandemic, when health insurance is more vital than ever."

In a joint statement, Brandon McKoy, President of New Jersey Policy Perspective, Elise Boddie, of the The Inclusion Project, Rev. Dr. Charles Boyer, Director of Salvation and Social Justice, Rev. Eric Dobson, Deputy Director of the Fair Share Housing Center Jerome Harris, Managing Director of The Harris Organization, Richard T. Smith, President of NAACP New Jersey State Conference, who are members of United Black Agenda, said:

"With a state-level health insurance assessment in place, New Jersey can get to work dismantling the barriers to care faced by Black residents in every corner of the state. For far too long, Black New Jerseyans have been disproportionately represented among the state's uninsured. This is a troubling manifestation of white supremacy and the nation's legacy of slavery. We thank Governor Murphy, Senator (Joe) Vitale, and Assemblyman (John) McKeon for their leadership on this critical measure to expand health coverage and reduce disparities in the health care system."

Murphy's Administration has taken numerous actions to improve access to health coverage, including the creation of a reinsurance program, instituting the shared responsibility requirement, and establishing a State-Based Exchange, among others. These actions have lowered insurance rates in the individual market, and attempted to set the foundation for improved health care outcomes in New Jersey.

"As the Trump administration has worked to dismantle the ACA, in New Jersey we moved to mirror what was available to people at the federal level, largely implementing it within our own state-based exchange," said Assemblyman John McKeon. "By replacing what stood at the federal level, this legislation simply serves as a state level continuation of a soon-to-expire assessment that insurers were already paying. This will allow us to more appropriately and significantly enhance the individual market in New Jersey and provide subsidies to keep rates down so insurance is more affordable for our families and individuals. Ultimately, this bill is a critical piece in our plan to safeguard access to affordable healthcare so that every New Jersey resident is insured."

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New Bill Lowers The Cost Of Healthcare For Some New Jerseyans - Long Valley, NJ Patch