Both the State Health Benefits Commission (SHBC) and the School Employees’ Health Benefits Commission (SEHBC) officially approved AON’s recommended premium increases for 2026. These approvals follow special hearings held last week, which members of the Benecard team attended to stay at the forefront of developments affecting our industry.
Key Takeaways from the Hearings
In July, we reported on the recommended premium increases from AON, the actuary for the State of New Jersey. With last week’s approvals, those recommendations are now official:
| SHBP – Local Government: +32.7% medical +62.9% prescription | SEHBP – School Boards: +27.9% medical +58.6% prescription |
In addition, both commissions discussed the possibility of implementing plan design changes for medical and Rx as early as 2026. While the scope and timing remain undetermined, this introduces new uncertainty for groups still in the State plans.
What This Means for Plan Sponsors
For plan sponsors, the message is clear: while the 2026 increases are now official, the uncertainty surrounding benefit design introduces another layer of risk. Local government and school board groups already face unsustainable premiums, and the possibility of mid-year changes only heightens the need to consider alternatives. Benecard can offer full risk protection and/or access to trusts or group purchasing organizations, providing greater stability and predictability. Moving sooner rather than later may help employers avoid the brunt of escalating costs and unpredictable plan design shifts.
Next Steps
Plan sponsors should review their most recent claims experience and census with their broker and obtain accurate quotes from private carriers.
If you are currently contracted with a broker, have them contact Richard Van Noord, Benecard’s Vice President of Sales, at (609) 651-5412 or Richard.VanNoord@benecard.com. If you do not have a broker, you can contact Richard directly to explore available solutions.
