A mandate requiring health insurance plans to provide unlimited treatment for mental health disorders was approved by the Assembly Health Committee on June 19. NJBIA opposes the bill, which would further drive up employers' soaring health-plan costs. A-2512 (Gordon, Johnson) would cover treatment of alcoholism, drug addiction and hundreds of behavioral disorders.
At a time when employers and their employees are struggling with skyrocketing health insurance costs, legislators should not add to their burden with this costly mandate. Instead, lawmakers should look for ways to reduce their costs. Respondents to NJBIA's Health Benefits Survey reported that their health insurance costs rose by a cumulative 55 percent in four years (2001 through 2004). The average cost to employers in 2004 was $7,300 per employee and the percentage of employers offering health insurance coverage fell significantly for the first time in the survey's 12-year history. Imposing this mandate would cost some people all of their health insurance benefits. They could lose their coverage for hospitalization, prescription drugs, doctor visits, blood tests, and everything else.
Furthermore, most insurance plans are already required to cover most of the serious and more common mental health disorders, and many insurance plans already provide coverage for substance abuse, but not the unlimited coverage A-2512 would mandate. Another problem with A-2512 is that it would not apply to all insurance plans, but only to those sold in the State's regulated market, which insures about 28 percent of the population. Almost all small businesses (those with two to 50 employees) that provide health benefits are in the regulated market, so this mandate would be imposed on the small employers who can least afford it. The measure now heads to the Assembly Appropriations Committee. For more information, contact Christine Stearns at ext. 260.
NJBIA Wins Key Amendments for Businesses in Eminent Domain Protection Initiative—Legislation that would protect property owners from overly aggressive eminent domain initiatives now includes several provisions that will help businesses. The bill, A-3257 (Burzichelli), passed the Assembly June 22. The NJBIA-backed amendments, approved by the Assembly Commerce and Economic Development Committee on June 19, would increase the maximum financial assistance for business relocation and compensate business owners for a business's “goodwill,” the intrinsic value of a business beyond the buildings and real estate.
The amendments also make it harder for a local government to condemn a property by creating a higher standard for declaring a property "an area in need of redevelopment" or what is commonly referred to as "blighted." A local government would be required to provide objective evidence of that blight. This is not required under existing law. Finally, business property owners would get the right of first refusal to lease or purchase property in the new development, and the public would have greater access to public information about eminent domain cases.
NJBIA supports the measure. Generally, eminent domain laws allow municipal governments to condemn private properties, take ownership of them after compensating owners, and then use them for public purposes, such as schools, roads and bridges. The focus recently has been on the government's ability to condemn private property that is determined to be “blighted,” then sell it to another private entity for economic development purposes. In New Jersey, a shrinking percentage of developable land, dramatically higher property values, and a scramble for more property tax ratables have created a “perfect storm” that is putting pressure on local governments to use eminent domain more frequently and sometimes abuse it. For more information, contact David Brogan at ext. 236.
Regulatory Flexibility Act Changes Would Help Small Businesses—Legislation that would ease the regulatory burden for small businesses was released by the Assembly Commerce and Economic Development Committee on June 19. The bill, A-2327 (Chivukula), would make several changes to the way State agencies promulgate rules that affect small businesses.
Currently, the New Jersey Regulatory Flexibility Act allows simplified reporting requirements for some small businesses. A-2327 would expand the definition of a small business to include those with annual sales of less than $6 million, regardless of the number of employees it has. Under current law, only businesses with fewer than 100 employees are considered “small.”
The bill also would require agencies to include consolidation or simplification of reporting requirements for small businesses when adopting or revising regulations. Additionally, the bill would grant small businesses adversely impacted by a regulation the right to seek judicial review. Small businesses could petition the Appellate Division of the Superior Court within one year of final adoption of the rule, and the court would be able to order the agency to rewrite the rule or defer enforcement of the rule on small businesses. For more information, contact David Brogan at ext. 236.
Prescription Price Database Bill Goes to Governor—The Senate on June 22 gave final legislative approval to a bill that would help consumers compare prices and save money on their prescriptions by creating a drug-price database. The bill, ACS-2537 (Greenstein, Conaway, Johnson, Diegnan)/S-1396 (Buono, Vitale), would create the “New Jersey Prescription Drug Retail Price Registry,” listing the retail prices various pharmacies charge for the 150 most frequently prescribed drugs. The list would be updated weekly, and the information would be organized so consumers could compare the prices of pharmacies located within a particular zip code. The measure now heads to Governor Jon Corzine.
NJBIA supports creation of a drug-price registry. If consumers are better able to compare prices, they will be able to save money on prescriptions and keep their out-of-pocket expenses down. Reducing prescription drug costs would also keep a lid on employers' healthcare costs. For more information, contact Christine Stearns at ext. 260.
RESERVE YOUR TEE TIME! Golf & Tennis Day, July 18—NJBIA will hold its 36th Annual Golf and Tennis Day at Forsgate Country Club in Monroe Township. The event is one of the State's major business outings, attracting 300 golfers each year. You can play 18 holes of golf with your colleagues or compete in a round robin tennis tournament at the air-conditioned East Brunswick Racquet Club. The cost per person is $260 for golf and dinner, $145 for tennis and dinner, and $99 for dinner only. You can register by contacting Stacy Wichner at 609-393-7707, ext. 213, or you can download the fax-back event registration form now. To become an event sponsor, contact Sherry Esteves at ext. 219.
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