N.J. Bill Would Ease Health Plan Rules For Small Firms

NU Online News Service, Nov. 13, 1:50 p.m. – The New Jersey Assembly is considering a bill that would make it easier for small employers to meet health insurers’ requirements for employee health plan participation.

Assembly Bill 3938 would allow employers to count employees who are covered under their spouses’ group health plans, or Medicare, in determining the participation rates required by health insurers.

Health insurers set minimum participation rates to protect against adverse selection. Insurers fear that plans with low participation rates, or no employer premium contributions, will attract only the sickest employees.