Bill Text: NJ S3310 | 2018-2019 | Regular Session | Introduced
Bill Title: Permits certain retirees to choose health care coverage under traditional Medicare or Medicare Advantage plan options offered by SHBP or SEHBP.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-01-15 - Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [S3310 Detail]
Download: New_Jersey-2018-S3310-Introduced.html
Sponsored by:
Senator JOSEPH F. VITALE
District 19 (Middlesex)
SYNOPSIS
Permits certain retirees to choose health care coverage under traditional Medicare or Medicare Advantage plan options offered by SHBP or SEHBP.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the State Health Benefits Program and the School Employees' Health Benefits Program and amending P.L.1961, c.49.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 8 of P.L.1961, c.49 (C.52:14-17.32) is amended to read as follows:
8. a. The health care benefits coverage of any employee, and the employee's dependents, if any, shall cease upon the discontinuance of the term of office or employment or upon cessation of active full-time employment subject to such regulations as may be prescribed by the commission for limited continuance of coverage during disability, part-time employment, leave of absence or layoff, and for continuance of coverage after retirement, any such continuance after retirement to be provided at such rates and under such conditions as shall be prescribed by the commission, subject, however, to the requirements hereinafter set forth in this section. Notwithstanding the provisions of any law to the contrary, for law enforcement officers employed by the State for whom there is a majority representative for collective negotiation purposes, and for nonaligned sworn members of the Division of State Police who retire after July 1, 2005, the coverage options available to such employees in retirement shall be limited to those options that were available to the employee on the employee's last day of employment. The commission may also establish regulations prescribing an extension of coverage when an employee or dependent is totally disabled at termination of coverage.
b. (1) Rates payable by retired employees for themselves and their dependents, by active employees for dependents covered by Medicare benefits, and by the State or other employer for an active employee alone covered by Medicare benefits, shall be determined on the basis of utilization experience according to classifications determined by the commission, provided, however, that the total rate payable by such retired employee for the employee and the employee's dependents, or by such active employee for the employee's dependents and the State or other employer for such active employee alone, for coverage hereunder and for Part B of Medicare, shall not exceed by more than 25%, as determined by the commission, the total amount which would have been required to have been paid by the employee and by the State or other employer for the coverage maintained had the employee continued in office or active employment and the employee and the employee's dependents were not eligible for Medicare benefits. "Medicare" as used in this act means the coverage provided under Title XVIII of the Social Security Act as amended in 1965, or its successor plan or plans.
(2) Medicare-eligible retired public employees enrolled in the State Health Benefits Program or the School Employees' Health Benefits Program shall have the option to select enrollment in a Horizon New Jersey DIRECT 10, Horizon New Jersey DIRECT 15, Aetna Freedom 10, or Aetna Freedom 15 traditional Medicare supplement plan.
(3) A Medicare-eligible retiree who chooses to enroll in a Horizon New Jersey DIRECT 10, Horizon New Jersey DIRECT 15, Aetna Freedom 10, or Aetna Freedom 15 traditional Medicare supplement plan shall pay the difference in premiums or periodic charges that the public employer pays for the benefits provided to a retired public employee for that retiree to be enrolled in a traditional Medicare supplement plan instead of the Medicare Advantage plan in which the retiree was enrolled.
(4) The Division of Pensions and Benefits shall calculate the difference in premiums or periodic charges that the public employer pays for the benefits provided to a retired public employee for that retiree to be enrolled in a traditional Medicare supplement plan instead of the Medicare Advantage plan in which the retiree was enrolled.
c. (1) From funds appropriated therefor, the State shall pay the premium or periodic charges for the benefits provided to a retired State employee and the employee's dependents covered under the program, but not including survivors, if such employee retired from one or more State or locally-administered retirement systems on a benefit or benefits based in the aggregate on 25 years or more of nonconcurrent service credited in the retirement systems, excluding service credited under the Defined Contribution Retirement Program established pursuant to P.L.2007, c.92 (C.43:15C-1 et al.), and excepting the employee who elected deferred retirement, but including the employee who retired on a disability pension based on fewer years of service credited in the retirement systems and shall also reimburse such retired employee for the premium charges under Part B of the federal Medicare program covering the retired employee and the employee's spouse. In the case of full-time employees of the Rutgers University Cooperative Extension Service, service credited in the federal Civil Service Retirement System (5 U.S.C.s.8331 et seq.) which was earned as a result of full-time employment at Rutgers University, may be considered alone or in combination with service credited in one or more State or locally-administered retirement systems for the purposes of establishing the minimum 25-year service requirement to qualify for the benefits provided in this section. Any full-time employee of the Rutgers University Cooperative Extension Service who meets the eligibility requirements set forth in this amendatory act shall be eligible for the benefits provided in this section, provided that at the time of retirement such employee was covered by the State Health Benefits Program and elected to continue such coverage into retirement.
(2) Notwithstanding the provisions of this section to the contrary, from funds appropriated therefor, the State shall pay the premium or periodic charges for the benefits provided to a retired State employee and the employee's dependents covered under the program, but not including survivors, if: (a) the employee retires on or after the effective date of this 1987 amendatory act; (b) the employee was employed by Rutgers University prior to January 2, 1955 and remained in continuous service with Rutgers University until retirement even though the employee (i) did not join a State-administered retirement system, or, (ii) became a member of a State-administered retirement system, but accumulated less than 25 years of credited service; and (c) the employee is covered by the program at the time of retirement.
(3) Notwithstanding the provisions of this section to the contrary, in the case of an employee of a State college, as described in chapter 64 of Title 18A of the New Jersey Statutes, or of a county college, as defined in N.J.S.18A:64A-1, service credited in a private defined contribution retirement plan which was earned as an employee of an auxiliary organization, as defined in section 2 of P.L.1982, c.16 (C.18A:64-27), at a State or county college shall be considered in combination with service credited in a State-administered retirement system for the purposes of establishing the minimum 25-year service requirement to qualify for the benefits provided in this section, provided that the employee is covered by the program at the time of retirement.
(4) Notwithstanding the provisions of this section to the contrary, from funds appropriated therefor, the State shall pay the premium or periodic charges for the benefits provided to a retired State employee and any dependents covered under the program, but not including survivors, if the employee: (a) retired prior to the effective date of P.L.1997, c.335 (C.52:14-17.32), under the State Police Retirement System, established pursuant to P.L.1965, c.89 (C.53:5A-1 et seq.), with more than 20 but less than 25 years of service credit in the retirement system; (b) was subsequently employed by the State in another position or positions not covered by the State Police Retirement System; (c) has, in the aggregate, at least 30 years of full-time employment with the State; and (d) is covered by the program at the time of terminating full-time employment with the State.
(cf: P.L.2007, c.103, s.46)
2. This act shall take
effect January 1 next following the date of enactment.
STATEMENT
This bill will permit Medicare-eligible retired public employees who are enrolled in the State Health Benefits Program (SHBP) or the School Employees' Health Benefits Program (SEHBP) the option to choose certain health care benefit plans under the State self-funded traditional Medicare program or under the insured Medicare Advantage program for their health care benefits coverage in retirement. The bill requires that all Medicare-eligible retired public employees enrolled in the State Health Benefits Program or the School Employees' Health Benefits Program shall have the option to select enrollment in a Horizon New Jersey DIRECT 10, Horizon New Jersey DIRECT 15, Aetna Freedom 10, or Aetna Freedom 15 traditional Medicare supplement plan. Medicare-eligible retirees who choose to enroll in a traditional Medicare supplement plan will be required to pay the difference in employer paid premiums or periodic charges between the traditional Medicare supplement plan chosen and the former Medicare Advantage plan in which they were enrolled. The Division of Pensions and Benefits is required to calculate the difference in employer-paid premiums or periodic charges resulting from the change in enrollment.
