Senate Commerce Committee Statement to Senate, No. 1646 — State of New Jersey (March 14, 2022)

Summary

A Senate Commerce Committee statement to the Senate on Senate Bill No. 1646, State of New Jersey, dated March 14, 2022, reporting the bill favorably. The bill requires the Department of Banking and Insurance to establish the New Jersey Easy Enrollment Health Insurance Program, using State income tax returns to identify residents interested in minimum essential coverage and assess their eligibility for insurance affordability assistance. The State Treasurer must add a checkoff box to the individual income tax return, and the department must set a special enrollment period of not shorter than 30 days. Unemployment insurance claimants could also indicate interest and consent to information sharing, and the statement says the bill is identical to Assembly Bill No. 674 (1R).

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No.
1646

STATE
OF NEW JERSEY

DATED: MARCH
14, 2022

The
Senate Commerce Committee reports favorably Senate Bill No. 1646.

This
bill requires the Department of Banking and Insurance (the department) 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
and approved eFile vendors to identify individuals and determine whether an
individual is interested in obtaining minimum essential coverage;

(2) determine
or assess, as feasible, 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, in coordination with
the Commissioner of Human Services, the Commissioner of Labor and Workforce
Development, 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
department is required to assess or determine, as appropriate, 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 or another individual indicated on the tax return is seeking health
benefits coverage.

To
the extent practicable, the department may 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 department
must take certain steps to obtain the information while limiting the burden on
the individual.

Under
the bill, the department is permitted to make, or refer to the Department of
Human Services to make, an assessment or determination, as appropriate, of
eligibility for the State Medicaid program or the NJ FamilyCare Program. The
department may utilize and share with the Department of Human Services any
information provided to the department in making assessments or determinations.

The
bill provides that the department is to establish a special enrollment period
for the New Jersey individual health insurance market to facilitate the
objectives of the program. The enrollment period is to last for a period of
time, to be determined by the department, that is not to be shorter than 30
days.

Information
about the enrollment period described in the bill is to 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 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, and any individual
claimed as a dependent on the tax return, is not covered under minimum
essential coverage 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 not covered under minimum essential coverage
at the time the tax return is filed.

The
separate form is required to include two checkoff boxes. One checkoff box is
to give an individual who files a tax return the choice to have the department
determine eligibility for insurance affordability assistance for the individual
filing the tax return and any other individual included in that tax return who
does not have minimum essential coverage, and obtain additional data that may
be relevant to that determination. The other checkoff box is to allow an
individual who files a tax return the choice to not have the department make
that determination for the individual filing the tax return and any other
individual included in the tax return who does not have minimum essential
coverage.

The
bill requires the State Treasurer to waive the State shared responsibility tax
applicable to months of the year that the tax return is filed for any taxpayer
who chooses the checkoff box indicating the taxpayer wishes the department to
determine the individual’s eligibility for insurance affordability assistance.
If the taxpayer fails to enroll in minimum essential 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 requires the Department of Labor and Workforce Development to implement a
system through which an individual who has filed a claim for unemployment
insurance benefits may, as part of the claim filing application, indicate that
the individual is interested in obtaining minimum essential coverage and
consent to participate to the sharing of relevant information collected by the
Department of Labor and Workforce Development with the Department of Banking
and Insurance, and the Department of Human Services to determine whether the
individual qualifies for the State Medicaid program or the NJ FamilyCare
Program, or any other insurance affordability assistance and to support minimum
essential coverage outreach and enrollment efforts.

The
bill takes effect immediately and applies to tax returns filed for taxable
years beginning after December 31, 2022, unless the State Treasurer determines,
after consultation with the Department of Banking and Insurance, that the
implementation of the certain provisions of the bill is not administratively
feasible for taxable years beginning after December 31, 2022, in which case the
Treasurer may delay implementation to begin as soon as feasible thereafter.

As reported, this bill is identical to Assembly Bill
No. 674 (1R) as amended and reported by the Assembly Financial Institutions and
Insurance Committee on February 3, 2022.

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