Senate Commerce Committee Statement - Senate Bill No. 3238 (January 21, 2021)

Summary

Senate Commerce Committee statement to Senate, No. 3238, with committee amendments, State of New Jersey, dated January 21, 2021. As amended, the bill requires the Department of Banking and Insurance to establish and operate the New Jersey Easy Enrollment Health Insurance Program, which uses State income tax returns to identify individuals interested in minimum essential coverage and to determine whether they qualify for insurance affordability assistance. The bill requires a checkoff box on the income tax return form and a special enrollment period that may not be shorter than 14 days. The statement says the bill takes effect immediately, and the committee amended it to make a technical change.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

     SENATE COMMERCE COMMITTEE

                    STATEMENT TO

                  SENATE, No. 3238
                   with committee amendments



 STATE OF NEW JERSEY
                    DATED: JANUARY 21, 2021

    The Senate Commerce Committee reports favorably and with
committee amendments Senate Bill No. 3238.
    As amended, this bill requires the Department of Banking and
Insurance to establish and operate the New Jersey Easy Enrollment
Health Insurance Program (the program). The department is required
to integrate the program with the State-based health insurance
exchange, and may enter into an agreement with a third-party for
operation of the program. The purpose of the program is to:
    (1) establish a State-based reporting system to provide information
about the health insurance status of State residents through the use of
State income tax returns to identify individuals and determine whether
an individual is interested in obtaining minimum essential coverage;
    (2) determine whether an individual who is interested in obtaining
minimum essential coverage qualifies for insurance affordability
assistance;
    (3) proactively contact an individual who is interested in obtaining
minimum essential coverage to assist in enrolling the individual in
insurance affordability assistance and minimum essential coverage;
and
    (4) maximize enrollment of eligible individuals in insurance
affordability assistance and minimum essential coverage to improve
access to care and reduce insurance costs for all residents of the State.
   The bill requires the Commissioner of Banking and Insurance, the
Commissioner of Human Services, and the State Treasurer to develop
and implement systems, policies, and practices that encourage,
facilitate, and streamline determination of eligibility for insurance
affordability assistance and enrollment in minimum essential coverage
to achieve the purposes of the program.
    The bill requires the Commissioner of Banking and Insurance to
establish a New Jersey Easy Enrollment Health Insurance Program
Advisory Workgroup to provide ongoing advice regarding the
implementation of the program, which is to include representation
from various organizations. The workgroup is required to meet at least
once every six months.
                                  2

     The program is required to determine eligibility for insurance
affordability assistance as soon as possible after an individual files a
State income tax return on which the individual indicates that the
individual is seeking health benefits coverage.
     To the extent practicable, the program must verify an individual's
eligibility for insurance affordability assistance with information on a
State income tax return and other data from third-party data sources,
without requesting additional information from the individual.
     The bill provides that if additional documentation from an
individual is required to establish eligibility for insurance affordability
assistance, the program must take certain steps to limit the burden on
the individual.
     Before determining eligibility of an individual for insurance
affordability assistance, the program is required to attempt to verify
the citizenship status of the individual and each household member
listed on the State income tax return, based on the information
available from the return and reliable third-party sources of citizenship
data. If this process does not confirm that the individual and each
household member listed on the State income tax return is a United
States citizen, the program may not seek additional verification or take
other steps to determine eligibility for or enroll the individual in
insurance affordability assistance until the individual provides
affirmative consent using forms and procedures approved by the
program.
     If citizenship is not verified and affirmative consent is not provided
in accordance with the bill, the program may not take any further steps
to determine an individual's eligibility for or enroll an individual in
insurance affordability assistance.
     The bill requires the program to make a determination of eligibility
for the State Medicaid program or the NJ FamilyCare Program before
determining eligibility for any other insurance affordability assistance.
If an individual is determined to be eligible for the State Medicaid
program or the NJ FamilyCare Program, the procedures described in
the bill and the guidelines established by the program to implement the
bill apply.
     If an individual fails to select a managed care organization plan
within a period of time established by the program, the program may
assign the individual to and promptly enroll the individual in a
managed care organization plan.
     Before an individual is assigned to a managed care organization
plan, the individual is required to receive advance notice, an
opportunity to select another managed care organization plan, and an
opportunity to opt out of coverage.
     If an individual is determined to not be eligible for the State
Medicaid program or the NJ FamilyCare Program, the program is
required to determine whether the individual is eligible for premium
tax credits or cost-sharing reductions.
                                 3

     The bill provides that a special enrollment period for the New
Jersey Individual Health Coverage Program will begin on the date an
income tax return is filed by or on behalf of an individual that
indicates the individual is seeking insurance coverage. The enrollment
period is to last for a period of time, to be determined by the program
before the start of the calendar year, that may not be shorter than 14
days.
     Information about the enrollment period described in the bill must
be communicated to the public and affected individuals through
measures that may include language in the instructions for the State
individual income tax return, if inclusion of the language is approved
by the State Treasurer.
     The bill requires the Department of Banking and Insurance to
develop data privacy and data security safeguards to govern the
conveyance, storage, and utilization of data under the program.
     The bill requires the State Treasurer to include on the individual
income tax return form a checkoff box for indicating whether the
individual, or each spouse in the case of a joint return, and any
individual claimed as a dependent on the tax return is uninsured at the
time the tax return is filed.
     The bill requires the State Treasurer to include with the income tax
return form a separate form that is required only for individuals who
file a tax return indicating that an individual is uninsured at the time
the tax return is filed.
     The form is required to include two checkoff boxes. One checkoff
box shall give an individual who files a tax return the choice to have
the program determine the individual's eligibility for insurance
affordability assistance, and obtain additional data that may be relevant
to determine the individual's eligibility for insurance affordability
assistance. The other checkoff box shall allow an individual who files
a tax return the choice to not have the program make that
determination.
     The bill requires the State Treasurer to waive the State shared
responsibility tax for any taxpayer who chooses the checkoff box
indicating the taxpayer wishes the program to determine the
individual’s eligibility for insurance affordability assistance. If the
taxpayer fails to enroll in health benefits coverage and maintain that
coverage in each month following the enrollment period, the taxpayer
is liable for any payments to which the taxpayer would have otherwise
been subject.
     The bill takes effect immediately and applies to tax returns filed
for taxable years beginning after December 31, 2020, unless the State
Treasurer determines, after consultation with the Department of
Banking and Insurance, that the implementation of the bill is not
                               4

administratively feasible for taxable years beginning after December
31, 2020, in which case the Treasurer may delay implementation to
taxable years beginning after December 31, 2021.

COMMITTEE AMENDMENTS:
  The committee amended the bill to make a technical change.


File and source

File

2021-01-21_SCM_S3238_S1.pdf

Size

124,519 bytes

SHA-256

29786069f35af1c40d3dde0ead7eac0d7e7b8f1746dd43822d94f994af26d1e3

Our copy

2021-01-21_SCM_S3238_S1.pdf

Original

No public link identified.