As part of the Assembly’s efforts to guarantee the Affordable Care Act’s (ACA) policies continue in New Jersey – regardless of what happens at the federal level – Assembly Democrats Chris Tully and Joe Danielsen sponsor a bill prohibiting health insurance companies from offering inexpensive yet highly deficient coverage to customers, known as ‘Basic and Essential Plans.’
Upon the bill (A-5506) being signed into law Thursday, the sponsors released the following statements:
“It’s understandable that the government wanted to encourage Americans to purchase ACA health insurance by initially offering simple and inexpensive plans,” said Assemblyman Chris Tully (D-Bergen, Passaic). “However, we now know these ‘Basic and Essential Plans’ simply do not cover the healthcare services many people require, which is why the ACA no longer allows them. In case the ACA is ever dismantled at the federal level, this law will make sure providers in our state do not begin offering these limited plans again.”
“Although some people were drawn to the lower-cost healthcare plans the ACA once provided, many didn’t realize just how limited their coverage would be,” said Assemblyman Joe Danielsen (D-Middlesex, Somerset). “When it comes to healthcare, the services provided can literally mean the difference between life and death. From high stakes procedures to daily medicine, no one should have to lose their life or experience crushing medical debt due to a lack of coverage. This will help make sure such restrictive plans can never be offered in the future.”
The act takes effect immediately.