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New Jersey launches working group for public health plan reform
Since 2022, premiums have climbed more than 60% for state employees and more than 100% for local government employees, while over 20% of local participants have left the program.
New Jersey Gov. Mikie Sherrill has announced a multi-stakeholder working group aimed at pursuing structural reform of the state’s public employee health benefits program, following a documented financial breakdown, according to RNJ News and coverage by Insurance Business.
The initiative comes as premiums since 2022 have risen more than 60% for the state employee group and more than 100% for the local government group, Insurance Business reported, citing a 2026 resolution of the New Jersey State Health Benefits Plan Design Committee.
Insurance Business said the state’s own Treasury has warned the program is structurally unstable, pointing to an adverse selection spiral that was accelerating after more than 20% of local government participants left the plan.
The working group’s scope will cover plan design, provider networks, premium contribution structure, program governance, and administration, with participants including Aetna and Horizon Blue Cross Blue Shield of New Jersey, along with 17 labor unions and public employer associations.