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Benson & Schaer Bill Requiring Health Insurance Companies to Spend a Certain Percent on Payment of Claims Now Law

As part of the Assembly’s ongoing efforts to ensure aspects of the Affordable Care Act remain in place in New Jersey even if the program is dismantled at the federal level, Assembly Democrats Daniel Benson and Gary Schaer sponsor legislation requiring health insurance companies to spend at least 85 percent of the money it receives on paying patients’ claims.

Upon the bill (A-5504) being signed into law Thursday, the sponsors released the following statements:

The Affordable Care Act was groundbreaking in expanding health insurance coverage for millions of Americans.  It is important for our state that we maintain the essential protections of Obamacare for all our families,” said Assemblyman Daniel Benson (D-Mercer, Middlesex). “This new state law will help guarantee the money residents spend on their health insurance overwhelmingly goes to the medical care and services they need.”  

“This law allows for continued oversight of health insurance companies so that our state can make sure they are properly applying customers’ payments,” said Assemblyman Gary Schaer (D-Bergen, Passaic.) “There is no room for frivolous spending when it comes to health; the hard-earned money coming out of our residents’ paychecks for health insurance should go towards actually giving them the treatments, tests, procedures and medications they need.”

The act takes effect immediately.