Governor Phil Murphy signed a bill on Wednesday that will require all NJ residents to have health coverage or pay a fine. This will make New Jersey the second state in the country to legislate the individual health insurance mandate.
This repeal took place due to the fear that healthy people would steer away from the health insurance market which would result in higher premiums.
According to the U.S. Census, 92 percent of NJ residents had health insurance in 2016.
New Jersey’s mandate will take effect on January 1st, 2019. State officials will have seven months to alert individuals about the new requirement.
With this mandate in effect, the state is expecting to collect between $90 million and $100 million in penalties. This money will go into funding a reinsurance program, which Murphy also signed into law on Wednesday. The cost estimate is based on $93.9 million the Internal Revenue Service collected from the more than 188,500 New Jersey residents who paid the penalty under the federal mandate.
Cosmo Insurance stays up to date on the changing health care laws and restrictions. If you have any questions or concerns about health insurance updates, feel free to speak with one of Cosmo’s licensed brokers.
Cosmo Insurance Agency is an independent insurance agency serving surrounding communities in New Jersey. Cosmo keeps its promise to assure an efficient and creative approach to the services we offer. Each of our clients experience a personalized and long-term relationship with us. Our New Jersey based team of health brokers guides our clients in helping them choose the most cost-effective options. By incorporating the latest in technology-based tools and laws on healthcare, employee benefits, life insurance and finance, we keep our clients up-to-date with the plans that encompass all of their needs, whether it is individual or group insurance.