New Jersey A 2625: Requires employers other than State who participate in SHBP and employers who participate in SEHBP to remain enrolled in program for minimum of five years.

Bill Text

A2625 

ASSEMBLY, No. 2625 

STATE OF NEW JERSEY

222nd LEGISLATURE

� 

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman CARMEN THERESA MORALES

District 34 (Essex)

SYNOPSIS

���� Requires employers other than State who participate 
in SHBP and employers who participate in SEHBP to remain enrolled in program 
for minimum of five years.

CURRENT VERSION OF TEXT 

���� Introduced Pending Technical Review by Legislative 
Counsel.

�� 

An Act concerning participation in the State Health 
Benefits Program and the School Employees� Health Benefits Program and 
supplementing P.L.1961, c.49 (C.52:14-17.25 et seq.) and P.L.2007, c.103 
(C.52:14-17.46.1 et seq.).

���� Be It 
Enacted by the Senate and General Assembly of 
the State of New Jersey:

���� 1.� a. 
�Notwithstanding the provisions of any other law, rule, or regulation to the 
contrary, any employer other than the State that elects to participate in the 
State Health Benefits Program on or after October 1, 2026 shall be required to 
remain enrolled in the program for a minimum period of five consecutive plan 
years following the effective date of the employer�s initial enrollment.

���� b. �Any 
employer other than the State that voluntarily terminates its participation in 
the State Health Benefits Program on or after October 31, 2027, and 
subsequently re-enters the program, shall be required to remain enrolled in the 
State Health Benefits Program for an additional minimum period of five 
consecutive plan years following the date of re-enrollment, which shall be in 
addition to the initial five-year enrollment period.� For each subsequent 
voluntary termination and re-entry into the State Health Benefits Program by 
the same employer, the mandatory participation period shall be extended by an 
additional five consecutive plan years and shall be applied cumulatively such 
that the employer shall remain enrolled for a total of 10 years after its first 
re-entry, 15 years after its second re-entry, 20 years after its third 
re-entry, and so on for each successive re-entry.

���� 2.� The 
Division of Pensions and Benefits, in consultation with the State Health 
Benefits Commission, shall develop and implement a participant balancing 
mechanism to mitigate the adverse impact of voluntary terminations by employers 
other than the State on overall program costs. �This mechanism shall include, 
but not be limited to, efforts to identify and enroll other eligible employers 
into the program to maintain risk pool stability.

���� 3.� To 
promote transparency and fiscal accountability, the Division of Pensions and 
Benefits shall:

���� a. �provide 
timely notice to all participating employers other than the State of any 
changes in premium rates, cost allocations, or benefit adjustments that affect 
the employer�s plan contributions, which notice shall be in writing and 
delivered prior to the start of the plan year; and

���� b. �maintain 
and publish, on a publicly accessible website, a list of all employers other 
than the State that have voluntarily terminated participation in the program, 
including the name of the employer, the date of voluntary termination, and the 
number of employees or retirees covered under that employer at the time of the 
voluntary termination, which list shall be updated on an annual basis at the 
beginning of the plan year. 

���� 4.� The 
Division of Pensions and Benefits shall publish an annual report, made 
available to the public and submitted to the Governor, and to the Legislature pursuant 
to section 2 of P.L.1991, c.164 (C.52:14-19.1), detailing:

���� a. �the 
number and identity of employers other than the State entering and exiting the 
State Health Benefits Program;

���� b. �the 
number of employers subject to the minimum participation or re-enrollment 
restriction requirements established under section 1 of P.L.��� , c.��� 
(C.������� ) (pending before the Legislature as this bill);

���� c. �the 
performance and effectiveness of the participant balancing mechanism described 
in section 2 of P.L.��� , c.��� (C.������� ) (pending before the Legislature as 
this bill); and

���� d. �any 
material trends in participation or cost-sharing that could impact the fiscal 
sustainability of the program.

���� 5.� The 
State Treasurer shall adopt rules and regulations pursuant to the 
"Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), 
as necessary to implement the provisions of P.L.��� , c.��� (C.������� ) 
(pending before the Legislature as this bill), including, but not limited to, 
procedures for enforcement, penalties for early voluntary terminations from the 
State Health Benefits Program, and criteria for re-entry.

���� 6.� a.� 
Notwithstanding the provisions of any other law, rule, or regulation to the 
contrary, any employer that elects to participate in the School Employees� 
Health Benefits Program on or after October 1, 2026 shall be required to remain 
enrolled in th