The NJ School Employees’ Health Benefits Commission (SEHBC) meeting on August 19th brought no final resolution for the School Employees’ Health Benefits Program (SEHBP), which remains under significant financial strain amid a proposed 32.4% increase in medical premiums and a 45.5% increase in prescription drug premiums for active employees.
The only update stems from the NJ School Employees’ Health Benefits Commission approving revised retiree rate recommendations, but those recommendations have not been advertised or finalized as of yet. Meanwhile, the Commission remains deadlocked on a 4-4 vote to finalize the 2027 active population premium increases. This vote came four weeks after the commission failed to finalize the active population premium increases on July 27th, citing the need to review cost saving options. Aon presented several cost saving considerations for both the medical and prescription plans, but the NJ State Plan Design Committee (PDC), not the SEHBC, is responsible for plan changes. It was further noted that Chapter 44, which relates to the NJ Educators Health Plan (EHP) and Garden State Health Plan (GSHP), bars any changes until 2028.
The SEHBC will reconvene on September 3rd for another vote, though it’s unclear what, if anything, will have changed by then. Benecard is keeping a close eye on this subject and will continue to update you as new information becomes available.
In the meantime, plan sponsors enrolled in either the SEHBP or SHBP, can be proactive by starting to look into alternative options. Contact Richard Van Noord, our Vice President of Sales, at Richard.VanNoord@benecard.com or (609) 651-5412 to learn how Benecard’s fixed-rate prescription benefit model can offer greater predictability and stability.
Sources:
NJ Teachers Face a Health Insurance Nightmare – And No One Can Stop It
https://nj1015.com/nj-teachers-health-insurance-increase
NJ SHBP & SEHBP 2027 Rate Recommendations Released – What You Should Know
https://www.benecard.com/nj-shbp-sehbp-2027-rate-recommendations-released-what-you-should-know/
Plan Year 2027 Rate Renewal Reports (recommendations):
https://www.nj.gov/treasury/pensions/rate-renewal.shtml
Aon’s SHBP “Plan Year 2027 Rate Setting Recommendation Analysis” Local Government draft report:
https://www.nj.gov/treasury/pensions/documents/hb/rate-renewal/py2027-rate-setting-analysis-local.pdf
Aon’s “2027 SHBP Rate Setting Analysis” draft report presentation:
https://www.nj.gov/treasury/pensions/documents/hb/rate-renewal/shbp-2027-rate-setting-analysis.pdf
View Aon’s SEHBP “Plan Year 2027 Rate Setting Recommendation Analysis” Education draft report:
https://www.nj.gov/treasury/pensions/documents/hb/rate-renewal/py2027-rate-setting-analysis-education.pdf
Aon’s “2027 SEHBP Rate Setting Analysis” draft report presentation:
https://www.nj.gov/treasury/pensions/documents/hb/rate-renewal/sehbp-2027-rate-setting-analysis.pdf
