Created: 22 July 2020
Businesses in New Jersey could face higher health insurance premiums under legislation introduced July 6 that would impose a new state tax on fully insured health insurance premiums. Ocean City Regional Chamber of Commerce opposes the bill.
S-2676 (Vitale, D-19) / A-4389 (McKeon, D-27), would impose a new 2.75% state excise tax on fully insured health insurance premiums for health benefits plans, MEWAs and dental and vision coverage. The bill is similar to a health insurance tax Gov. Phil Murphy proposed in his original FY 2021 budget proposal, which he put forth before the pandemic began in the U.S.
Ocean City Regional Chamber of Commerce opposes the bill because it will increase healthcare costs for employers who have been struggling for years to continue to provide healthcare coverage to their employees despite soaring costs.
The Chamber does not believe taxing health coverage will make it more affordable. Taxing a product to make it more affordable makes no logical sense.
At this time we urge you to email and call every member of the New Jersey Senate and Assembly who represent the towns where you live and do business and tell them how much the bill will cost your company. Let them know that’s money you won’t be using to expand your business, buy new equipment, give raises, give bonuses, contribute to profit sharing, health savings accounts, 401(k), etc.
Governor Phil Murphy – https://nj.gov/governor/contact/
Senator Michael Testa, Assemblyman Antwan McClellan, and Assemblyman Erik Simonsen – https://www.njleg.state.nj.us/SelectMun.asp
Click here for a sample letter.
These bills are scheduled to be heard this week.
