A319

Sponsored by:

Assemblyman TROY SINGLETON

District 7 (Burlington)

Assemblyman JOHN S. WISNIEWSKI

District 19 (Middlesex)

Assemblyman HERB CONAWAY, JR.

District 7 (Burlington)

Assemblywoman MARLENE CARIDE

District 36 (Bergen and Passaic)

Assemblywoman ANNETTE QUIJANO

District 20 (Union)

Assemblywoman SHAVONDA E. SUMTER

District 35 (Bergen and Passaic)

Assemblyman BENJIE E. WIMBERLY

District 35 (Bergen and Passaic)

Co-Sponsored by:

Assemblymen Burzichelli and Chiaravalloti

SYNOPSIS

Permits reimbursement of COBRA health benefit costs of survivors of certain deceased public safety employees; appropriates $750,000.

CURRENT VERSION OF TEXT

Introduced Pending Technical Review by Legislative Counsel.

An Act concerning health benefit costs of survivors of deceased public safety employees, supplementing chapter 18A of Title 52 of the Revised Statutes, and making an appropriation.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):

"COBRA continuation coverage" means health coverage provided pursuant to the federal Consolidated Omnibus Budget Reconciliation Act of 1985.

"Formerly-covered dependent" means a "dependent," as defined under N.J.S.40A:10-16, of a public safety employee, which dependent has paid for COBRA continuation coverage as the result of the public safety employee having died while on duty, or within 24 hours of going off duty, so long as the dependent had been under medical, drug, or other health care coverage through the State Health Benefits Program, established pursuant to the "New Jersey State Health Benefits Program Act," P.L.1961, c.49 (C.52:14-17.25 et seq.), or through the public safety employee’s employer, until the time of the public safety employee’s death.

"Public safety employee" means a permanent, full-time member of a State, county, or municipal law enforcement agency or a county sheriff's office who is statutorily empowered to act for the detection, apprehension, arrest, and conviction of offenders against the laws of this State; an active member in good standing of a paid, part-paid, or volunteer fire department or of a duly incorporated first aid, emergency, ambulance, or rescue squad; or a State or county correctional officer.

"Qualifying formerly-covered dependent" means a "formerly-covered dependent" who properly submits an application pursuant to subsection a. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

2. a. On or before March 1 of each year, a formerly-covered dependent, or their legal guardian or head of household acting on their behalf, may apply to the State Treasurer for a reimbursement of the cost of the first six months of COBRA continuation coverage, so long as that first six-month period ended during the preceding calendar year.

b. The State Treasurer shall annually reimburse qualifying formerly-covered dependents for the cost actually paid for the first six months of COBRA continuation coverage. If, during any year, the amount of funding dedicated to formerly-covered dependent reimbursement payments through the annual appropriations act is less than the total amount applied for by qualifying formerly-covered dependents, then the amount paid to each qualifying formerly-covered dependent shall be allocated pro rata, based on the cost of the first six months of the COBRA continuation coverage of each qualifying formerly-covered dependent.

c. The State Treasurer may promulgate rules and regulations necessary to effectuate the purposes of this act, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).

3. There is appropriated $750,000 from the General Fund to the Department of Treasury for the purpose of implementation of P.L. , c. (C. ) (pending before the Legislature as this bill). The Legislature, to the extent possible, shall ensure that sufficient appropriations from the General Fund are included in subsequent appropriations acts to maintain the reimbursement established by P.L. , c. (C. ) (pending before the Legislature as this bill).

4. This act shall take effect immediately.

STATEMENT

This bill seeks to address the burdensome cost of health insurance, as provided through federal COBRA continuation coverage, by allowing the dependents of certain recently-deceased public safety employees to apply to the State Treasurer for a reimbursement of the cost of the first six months of COBRA continuation coverage.

This bill addresses the concern raised by the Pension and Health Benefits Review Commission that the prior version of the bill requiring employers to continue coverage for six months after the employee’s death would have made dependents ineligible for COBRA coverage altogether. COBRA continuation coverage ordinarily is available for 36 months. This bill is intended to not interfere with dependents’ ability to keep COBRA coverage for this full term if desired.

The COBRA reimbursement permitted under this bill applies to the spouse and unmarried children of State and local public safety employees, including State and local police, full-time, part-time and volunteer firefighters, State and county correctional officers, and members of first aid, emergency, ambulance or rescue squads, if the public safety employee died while on duty, or within 24 hours of going off duty. The COBRA reimbursement is only available so long as the dependents were covered by health insurance through the State Health Benefits Program, or otherwise through the public safety employee’s employer, until the time of death.

To obtain a COBRA reimbursement, any dependent, for whom the first six months of COBRA coverage ended during the previous calendar year, may apply to the State Treasurer by March 1.