A bipartisan group of legislators recently unveiled the first phase of a plan to eventually achieve health insurance coverage for all New Jerseyans. The plan would adopt several NJBIA-recommended reforms to improve the individual health insurance market and does not require employers to buy health insurance or pay penalties if they do not.

The bill was unveiled March 17 by Senator Joe Vitale, chairman of the Senate Health Committee, at a Trenton press conference with Assemblyman Lou Greenwald, chairman of the Assembly Budget Committee; Assemblyman Neil Cohen, chairman of the Assembly Banking and Insurance Committee (the two committees that will tackle the issue in the Assembly); and Senator Robert Singer, a Republican member of the Senate Health Committee.

As outlined at the press conference, healthcare in New Jersey would be expanded in two phases. The first phase is contained in S-1557 (Vitale), which was proposed for introduction on March 17. It would expand the existing NJ FamilyCare program, which provides health insurance subsidies for lower income children, and then mandate that all parents purchase health insurance for their children.

Of importance to the employer community, the bill aims to make health insurance more affordable, particularly for sole proprietors. The bill changes the pricing in the individual market to make coverage more affordable for younger purchasers. It would also reduce red tape in the small-employer market to cut down on administrative costs for insurance companies. Finally, the plan would require greater transparency in pricing by requiring the cost of riders and brokers’ commissions to be listed separately. These reforms are part of NJBIA's health insurance reform agenda and would help control costs for small companies.

The second phase envisions an individual mandate requiring all individuals to purchase health insurance in much the same way drivers are required to buy auto insurance. It would offer a State-managed health insurance product with subsidies for low-income households. Employers would not be required to provide health insurance, but those who do not would be required to establish Section 125 flexible spending accounts so their employees could purchase insurance with pre-tax dollars. This phase has not yet been incorporated in legislation. For more information, contact at ext. 260.

Key Transportation Leaders Recommend Gas Tax Increase, Toll Hikes to Fund Roads

The State should use an increase in the gas tax and toll hikes to fix a Transportation Trust Fund that will run out of money in 2011. That was the consensus of the speakers at the March 26 NJBIA Meet the Decision Makers panel discussion with NJ Department of Transportation Commissioner Kris Kolluri, Assemblyman John Wisniewski, chairman of the Assembly Transportation Committee, and Susan Bass Levin, first deputy executive director of the Port Authority of New York and New Jersey. The discussion was moderated by Joe Bisicchia, host of the cable-TV talk show Comcast Newsmakers.

The three panelists stressed that while such a tax increase would face strong public opposition, the alternative is to have no money to fix roads, repair bridges and improve mass transit. "The infrastructure system we have can be an impetus for economic growth, or it can be an impediment to it," Kolluri said, adding that New Jersey has deferred maintenance on much of its transportation system. "We are fast approaching the point where it's going to be an impediment."

Governor Jon Corzine had proposed large toll increases to be used to pay down State debt and put money in the trust fund, but public opposition shelved the plan. Wisniewski has proposed raising the gas tax by 6 cents a gallon annually for the next three years (an 18-cent increase altogether) and dedicating all of the money towards transportation projects. "My plan will fund projects for a generation so ten-year capital improvement plans are real ten-year plans, not a two-year plan with an eight-year wish list," Wisniewski said. He has also suggested that tolls be raised by 100 percent over eight years instead of the Governor’s plan that would raise them by 800 percent over 14 years.

Levin said that publicizing long-term capital improvement plans is important in getting the public to accept either a gas tax or toll increase. She said the Port Authority, which recently increased bridge tolls, maintains a 10-year capital improvement strategy with a two-year capital plan update. "What we have to convince the public of is that we are spending money in a way that is smart," she said.

Forms Available for NJ Mass Layoff Notice Requirements

Under a new State law, businesses with 100 or more employees must provide public notice prior to any "mass termination, termination of operations or transfer of operations" of 50 or more employees. The law requires employers to provide this notice on a form developed by the Department of Labor & Workforce Development that became available last week.

Employers should review the requirements of the law carefully in connection with any layoffs. Several of the terms and conditions differ from the federal requirements for layoff notification. For more information, contact at ext. 209.

Government Contractors’ Pay-to-Play ELEC Disclosure Forms Due March 31

For-profit businesses that had more than $50,000 worth of contracts with government entities in 2007 must disclose campaign contributions made to candidates for public office by Monday, March 31. The filings are required under New Jersey's new pay-to-play law. The law requires businesses that have government contracts to disclose campaign contributions by the contractor's principals, partners, officers or directors, and their spouses. For more information, contact at ext. 209. For more details, order our free Pay-to-Play Disclosure Fast Facts information sheet.

NJBIA's 2008-2009 Legislative Priorities Now Available

Want to know what New Jersey's Legislature is up to? Check out NJBIA's new Legislative Priorities Web page and get the latest on legislation impacting the way you do business in the Garden State. It is a comprehensive list of the probusiness bills that we are trying to get passed as well as the anti-business bills we are trying to stop. It is a dynamic list that will be updated on a regular basis, so revisit the page often. If you have any questions, please contact Senior Vice President at ext. 205.

Meet NJ's Top Government Leaders at 4 Special Briefings

NJBIA will bring together top Administration officials, along with legislative leaders, for insightful briefings at the Forsgate Country Club in Monroe Township on five of the biggest issues impacting your business operations, Taxes and Spending - April 2, Healthcare Reform - April 22, Energy - May 16, and Environmental Regulation and Legislation - October 17.

Support the NJ Business Hall of Fame Gala, April 17

The NJ Business Hall of Fame (NJBHOF) 2008 Gala, to be held April 17 at The Mezzanine in Newark, will honor three business leaders, including NJM Insurance Group President and CEO Anthony G. Dickson. Please support this special event by buying a ticket, being a sponsor and/or purchasing an advertisement. Call Dawn Schwartz at 973-533-1133 for more information.