New Jersey’s somewhat contentious stop-loss bill (A5095/S3270) passed in both the Senate and Assembly on January 13, 2020. The bill will now advance to the desk of Governor Murphy, where he will either approve, veto, or conditionally veto the bill.
The bill originally called for the complete prohibition of stop-loss policies in the New Jersey small group market. Passed by the legislature yesterday with amendments, stop-loss policies can still be sold to small employers. The stop-loss rating must be compliant with the NJ SEH Benefits Program and policies are subject to guaranteed renewal. Additionally, the following conditions will exist:
- A specific attachment point of no less than $40,000
- An aggregate attachment point of at least 140% of the expected claims per plan year
These provisions would apply to all stop-loss policies sold or in-force with small employers in New Jersey on or after April 1, 2020. The full bill can be found here.
Cosmo Insurance Agency is an independent insurance agency serving surrounding communities in New Jersey. Cosmo keeps its promise to assure an efficient and creative approach to the services we offer. Each of our clients experience a personalized and long-term relationship with us. Our New Jersey based team of health brokers guides our clients in helping them choose the most cost-effective options. By incorporating the latest in technology-based tools and laws on healthcare, employee benefits, life insurance and finance, we keep our clients up-to-date with the plans that encompass all of their needs, whether it is individual or group insurance.
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