On July 23, the Senate Commerce Committee, by a vote of 3-2, and the Assembly Financial Institutions Committee, by a vote of 9-4, both released from Committee S-2676 (Vitale)/A-4389 (McKeon), which would implement a new 2.75 percent tax on fully insured health insurance premiums for health benefits plans. It now has been referenced to the Appropriations committee.

The intended purpose of S-2676 (Vitale)/A-4389 (McKeon) is to provide more affordable access to health care in New Jersey, a concept that the CCSNJ undeniably supports. However, this proposal will inevitably lead to higher health insurance premiums for employers that already struggle to afford health insurance coverage for their employees. Should the tax increase proposed in this bill go into effect, the higher premiums will trickle down increasing the cost of insurance for employees at a time when families can ill-afford it.

To read the Coalition letter, which the CCSNJ co-signed, opposing this bill, click here.

To read the CCSNJ position on the bill, click here.

Please reach out to Hilary Chebra, Manager, Government Affairs, at hchebra@chambersnj.com if you have any questions.