New Jersey Administrative Code
Title 17 - TREASURY - GENERAL
Chapter 9 - STATE HEALTH BENEFITS PROGRAM
Subchapter 1 - ADMINISTRATION
Section 17:9-1.7 - Employer incentives for non-enrollment

Universal Citation: NJ Admin Code 17:9-1.7

Current through Register Vol. 56, No. 18, September 16, 2024

(a) Except as allowed by 52:14-17.3 1a, an employer shall not offer a financial enticement of cash or anything else of value to an employee who elects not to enroll or to terminate enrollment in the SHBP.

(b) Any participating local employer, other than the State, is allowed to pay an employee an incentive to waive coverage if that employee is eligible for other health coverage.

1. For waivers filed on or after May 21, 2010 (the effective date of P.L. 2010, c. 2), the incentive shall not exceed $5,000 or 25 percent of the amount saved by the employer because of the employee's waiver of coverage, whichever is less.

2. For waivers filed before May 21, 2010 (the effective date of P.L. 2010, c. 2), the incentive may be up to 50 percent of the amount saved by the employer.

(c) The employee may enroll immediately into the program if the other coverage or the waiver ends, for any reason, including, but not limited to, the retirement or death of the spouse or divorce. The employee must repay, on a pro rata basis, any amount received, which represents an advance payment for a period of time during which coverage is resumed.

(d) To waive coverage or resume coverage that has been waived, an employee must notify his or her employer, and both must notify the SHBP in writing by submitting a Coverage Waiver/Reinstatement for State Employees if employed by the State of New Jersey, or a Coverage Waiver/Reinstatement for Local Government/Educational Employees if employed by a local government or local education entity.

(e) If the member is waiving coverage because of other SHBP or SEHBP coverage, no monetary incentive is allowed.

(f) No general resolution is required for the adoption of the waiver incentive, since the employer's certifying officer must sign each individual waiver application.

(g) An employee who waives coverage under this section is not precluded from continuing coverage into retirement.

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