Breaking News: Harmful Self-Insurance Legislation Blocked in New Jersey

Governor Vetoes Legislation Designed to Restrict the Self-Insurance Marketplace in That StateJanuary 21, 2020- Responding to a focused lobbying effort spearheaded by SIIA, Governor Phil Murphy exercised a pocket veto of Senate Bill (S) 3270, thereby blocking legislation that would have effectively eliminated small group stop-loss contracts. Having worked diligently for the past year with a number of coalition partners to defeat this legislation, SIIA commends the Governor’s action that will ensure a viable small group self-insurance market in the state.

As you may recall from prior communications, S. 3270 would impose the following new requirements on stop-loss contracts by requiring:

  • Products to be priced using health insurance product “community rating;”
  • a $40,000 individual attachment point; and
  • a 140% minimum aggregate attachment point

Over the past year, SIIA and other coalition partners attended numerous meetings with legislators in Trenton and in their district offices, the governor’s office, and the insurance commissioner. In addition to leading coalition letters, SIIA testified in-person against the Senate legislation and submitted testimony opposing the Assembly legislation. Finally, SIIA members played an important role in this victory by sending messages to the governor’s office asking him to veto the bill. A source in the governor’s office said key staff noticed all the correspondence concerning S. 3270. Thank you to all those members who submitted comments and feedback.

While SIIA recognizes that small group markets in New Jersey and elsewhere do not represent a significant number of self-insured employers, this is an important development as each year some states consider proposals to make self-insurance more difficult. Absent the expectation of strong opposition by SIIA, these states would be further encouraged to pursue such regulatory action.

For More Information
If you have any questions, please contact Adam Brackemyre, SIIA VP of State Government Relations, at

Finally, please note that a legislative/regulatory update session will be incorporated as part of SIIA’s upcoming Self-Insured Health Plan Executive Forum, scheduled for March 16-18, 2020 in Charleston, SC. Event details can be accessed online at