State Legislation

On December 21, 2005 Acting Governor Codey signed into law A4543/SCS2574/S2435. This new law allows for the availability on high deductible health plans coupled with federally qualified Health Savings Accounts.

• S2824 “Health Claims Authorization, Processing and Payment Act” passed the senate by a vote of 36 to 0 and now goes to the Assembly for consideration. This bill would set limits on the time it takes for “utilization management” to occur. It would also set rules governing reimbursement of claims in a more “timely” manner.

On January 5th, 2006, the Senate will be voting on the following bills:

• A1986/S1908 “New Jersey Health Care Access Study Commission”
• A3359/S2773 “Health Insurance Affordability and Accessibility Reform Act”
• A3759/S2283 This bill would require health insurers to provide for the extension of health benefits coverage for certain dependants up to the age of 30.
• S1314 This bill would require managed care carriers to provide certain health care providers with fee schedules.

All of these bills (except for S1314) would then have to go back to the Assembly for a concurrent vote. That could happen as early as January 9th. The legislative session ends on January 10th, 2006.

Federal Legislation

• The Census Bureau released its Consolidated Federal Funds Report. The report indicated that Medicare, Medicaid and Social Security made up about 1/2 of federal spending in 2004. Those 3 programs were responsible for almost 1 trillion dollars.
• Sen. Charles Schumer (D-NY) will be contacting the Center for Medicare and Medicaid Services (CMS) asking them to repeal some of the new Medicare Drug Benefit regulations. He is concerned that some of the rules have a negative effect on nursing homes. The current regulation may place nursing home residents into plans that don’t cover all the needed medications.
• S 1955  the Health Insurance Marketplace Modernization & Affordability Act is a bill that will allow for states to adopt model rating rules or bands developed by the National Association of Insurance commissioners. The bill would also allow for associations to offer health insurance coverage on a much more level playing field. All carriers could offer coverage with limited” mandates. The bill is expected to go through revisions.
• Rep. John Shadegg has introduced H.R. 2355 “Healthy Care Choice Act of 2005” This bill allows for the uninsured to shop across state lines for affordable individual health insurance. Insureds would be subject to the laws and mandates of that state. A similar bill, S 1015 has been introduced in the Senate.
• H.R. 218 has been introduced into the house. “The Health Care Tax Deduction Act of 2005” would provide for a tax deduction for amounts paid towards health insurance and prescription drugs.

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