The refunds are mandated by the State's health insurance reform laws and reflect excess health benefits plan premiums employers paid to insurance carriers and HMOs in calendar year 1995.
Small businesses are the backbone of New Jersey's strong economy.
This is the second year in a row that we have required carriers to provide refunds to small employers. Program Board, the state agency responsible for regulating the small employer health benefits market, joined in the announcement. Sanders also noted that since the SEH Program and the Individual Health Coverage Program over four years ago, enrollment in the reformed markets has exceeded one million for the first time. Under the health coverage market reforms that took effect in 1994, small employers with 2-50 employees are guaranteed refunds if their health carrier does not meet a 75 percent loss ratio requirement, meaning that it must pay out at least 75 cents in benefits for every premium dollar collected. Loss ratio requirements apply separately to each standard plan, and to all of a carrier's prereform plans considered together.