On July 30, the New Jersey Senate and the Assembly passed S-2676 (Vitale)/A-4389 (McKeon), which would implement a new 2.5 percent tax on fully insured health insurance premiums for health benefits plans.

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, the CCSNJ opposed this proposal as it 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. The bill now goes to the Governor's desk.

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

To read the CCSNJ position, click here.

Despite opposition from CCSNJ and the business community, the New Jersey the Assembly also passed by a vote of 41-27 A3999/S2380 (Giblin / Burzichelli / Murphy / Sweeney / Scutari / Singer) which would create a rebuttable presumption, for workers’ compensation insurance purposes, that certain essential employees contracted COVID-19 during the scope of their employment. This legislation could potentially overwhelm New Jersey’s workers’ compensation system. The bill now goes to the Governor's desk.

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.