Increases annual assessment on net written premiums of HMOs from five percent to six percent.

This bill (A4705) increases the annual assessment rate on health maintenance organizations' (HMOs) net written premiums in New Jersey from 5% to 6%. It directly affects all HMOs operating in New Jersey that hold a certificate of authority to operate in the state. The additional 1% assessment, effective for fiscal year 2025 and beyond, will generate approximately $83 million annually for the Health Care Subsidy Fund. This fund uses the revenue to provide charity care payments to hospitals, following the existing distribution formula established under prior law. The bill requires HMOs to pay the assessment quarterly but prohibits them from passing these costs to enrollees through higher premiums or fees.