LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 5199

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: JUNE 30, 2025

 

 

SUMMARY

 

Synopsis:

Requires resident and fellow physicians employed by Rutgers, The State University of New Jersey, who are eligible for coverage in SHBP, to be eligible to enroll and receive health insurance on first day of employment.

Type of Impact:

Annual State expenditure increase.

Agencies Affected:

Division of Pensions and Benefits in the Department of the Treasury.

 

 

Office of Legislative Services Estimate

Fiscal Impact

Annual 

 

State Expenditure Increase

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) finds that permitting eligible resident and fellow physicians employed by Rutgers, The State University of New Jersey, including University Hospital, and their dependents, to be eligible for healthcare coverage and enrollment in the State Health Benefits Program on their first day of employment will result in annual indeterminate expenditure increases to the State.

 

BILL DESCRIPTION

 

      This bill requires healthcare coverage through the State Health Benefits Program to be made available to eligible resident and fellow physicians employed by Rutgers, The State University of New Jersey, including University Hospital, and their dependents, on the first day of employment for new hires or the effective date of the bill for current employees.

      Under current law, there is a 60-day waiting period between an employee’s start date and the date the employee and any dependents become eligible for healthcare coverage under the State Health Benefits Program.

 

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS finds that permitting eligible resident and fellow physicians employed by Rutgers, The State University of New Jersey, including University Hospital, and their dependents, to be eligible for healthcare coverage and enrollment in the State Health Benefits Program on their first day of employment will result in annual indeterminate expenditure increases to the State.

      The actual cost increase to the State will depend on the number of eligible employees and their dependents who enroll in the program, whether such persons would have received other State-paid or subsidized healthcare coverage in the absence of immediate enrollment in the State Health Benefits Program, and the State portion of the cost of coverage in the enrollment year.

      The OLS does not have the information to determine actual costs, but notes that Rutgers employs over 1,700 resident and fellow physicians in its Graduate Medical Education Programs, only a fraction of whom would be considered new employees each year.  In Plan Year 2025, the State share of the premium for two months of coverage in the State Health Benefits Program for an employee with single coverage is approximately $1,600 and $5,200 for an employee with family coverage.

 

Section:

State Government

Analyst:

Anna Harris

Associate Fiscal Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).