SCR120

A Concurrent Resolution constituting a special committee of the Senate and General Assembly entitled the “New Jersey Public Employee Health Care Program Costs Investigation Committee.”

Be It Resolved by the Senate of the State of New Jersey (the General Assembly concurring):

1. There is constituted a special committee of the Senate and General Assembly entitled the “New Jersey Public Employee Health Care Program Costs Investigation Committee,” comprised of 14 members. Six members shall be appointed by the President of the Senate, not more than three of whom shall be of the same political party. Eight members shall be appointed by the Speaker of the General Assembly, not more than four of whom shall be of the same political party. There shall be two co-chairs of the special committee appointed jointly by the Senate President and Assembly Speaker from among the appointed members. There shall be two vice co-chairs of the special committee, who shall not be members of the same political party as the co-chairs, appointed jointly by the Senate President and Assembly Speaker from among the appointed members.

2. a. The New Jersey Public Employee Health Care Program Costs Investigation Committee shall review and investigate:

(1) the increases in the premiums and periodic charges of the State Health Benefits Program and School Employees’ Health Benefits Program;

(2) the reasoning provided for the increases in premiums and periodic charges;

(3) the contract negotiated by the State with Horizon Blue Cross Blue Shield, which was meant to lower costs by steering patients to the most efficient providers;

(4) the contract disputes raised by the State against Horizon and the reasoning provided by officials at the Department of the Treasury on why the State halted its $34 million contract dispute with Horizon;

(5) the allegations that the Governor’s Office may have pressured staff at the Department of the Treasury to halt the contract dispute and the effort by the department to recoup the $34 million;

(6) any other actions taken by the Governor’s Office that may have discouraged staff at the Department of the Treasury from developing, proposing, or negotiating plan design changes; and

(7) the implementation, if any, of P.L.2019, c.143 (C.52:14-17.30a and 52:14-17.30b) which created subaccounts in the State Health Benefits Program Fund and the School Employees’ Health
Benefits Program Fund and also required the State to procure a professional services contract for a third-party medical claims reviewer for the State Health Benefits Program and School Employees’ Health Benefits Program.

b. The committee shall issue a report of its findings and make recommendations on legislation and meaningful policy changes, including possible recommendations regarding negotiations of future State health care program contracts.

3. For the purposes of carrying out its charge under this resolution, the New Jersey Public Employee Health Care Program Costs Investigation Committee shall have all the powers conferred under the laws and the Constitutions of the State of New Jersey and of the United States, including, but not limited to, the following powers, provided that no subpoena shall be issued by the committee without the written consent of both co-chairs, both vice co-chairs, the President of the Senate, and the Speaker of the General Assembly:

a. the powers conferred pursuant to chapter 13 of Title 52 of the Revised Statutes, including, but not limited to, the power to issue subpoenas to compel attendance and testimony of persons and the production of books, papers, correspondence, other documents and materials, and electronic records and data;

b. to hold hearings, take testimony under oath, and receive documentary or physical evidence relating to the matters and questions it is authorized to investigate or study;

c. to use any and all reasonable means of interviewing or fact gathering, including, but not limited to, preliminary conferences or interviews;

d. to convene a meeting or hearing to determine the adequacy of the return and rule on the objection if a return on a subpoena or order for the production of documentary evidence is incomplete or accompanied by an objection;

e. to utilize the powers provided under R.S.52:13-3 or hold individuals or entities in contempt of the committee;

f. to make findings and reports to the Senate and General Assembly of any recommendations, including recommendations for enforcement, that the committee may consider appropriate with respect to the willful failure or refusal of any person to appear before it, to answer questions or give testimony during an appearance of that person as a witness, or to produce before the committee any books, papers, correspondence, other documents and materials, and electronic records and data that the committee may request;

g. to respond to any judicial or other process, or to make application to the courts of this State, or any other state, or the United States;

h. to report possible violations of any law, rule, regulation, or code to appropriate federal, State, or local authorities; and

i. to adopt additional rules or procedures not inconsistent with this resolution.

4. a. The New Jersey Public Employee Health Care Program Costs Investigation Committee shall be entitled to call to its assistance and avail itself of the services of the employees of the State of New Jersey, any political subdivision of the State, and any agency thereof, as may be required and as may be available for that purpose, and to employ any other services as may be deemed necessary, in order to perform the duties provided herein, and within the limits of funds appropriated or otherwise made available for that purpose.

b. The New Jersey Public Employee Health Care Program Costs Investigation Committee, upon the written approval of the President of the Senate and the Speaker of the General Assembly, shall be entitled to call to its assistance, employ, and avail itself of the services of one or more special counsel retained to assist the committee.

5. This concurrent resolution shall take effect immediately and shall expire upon the conclusion of the special committee’s investigation.

STATEMENT

This concurrent resolution constitutes a special committee of the Legislature entitled the “New Jersey Public Employee Health Care Program Costs Investigation Committee.” The creation of this committee is in response to several news articles highlighting the recommended increase in premiums and periodic charges for the State health care programs and allegations the Governor’s Office may have intervened during contract disputes with the State’s contractor, Horizon Blue Cross Blue Shield.

The committee will review and investigate the recommended increases in the premiums of the State Health Benefits Program and School Employees’ Health Benefits Program. The committee will also investigate allegations that the Governor’s Office may have pressured staff at the Department of the Treasury to halt the contract dispute with Horizon and the effort by the department to recoup the $34 million from the contract.

Additionally, the committee will review the implementation, if any, of P.L.2019, c.143, which created subaccounts in the State Health Benefits Program Fund and the School Employees’ Health Benefits Program Fund and also required the State to procure a professional services contract for a third-party medical claims reviewer for the State Health Benefits Program and School Employees’ Health Benefits Program.

The committee will make recommendations that address this subject.