S 4999 New Jersey Senate · 2024-2025 Regular Session

Amends Fiscal Year 2026 annual appropriations act concerning language requiring achievement of cost savings for SHBP.*

This bill removes a requirement from New Jersey's Fiscal Year 2026 state budget that mandated the State Health Benefits Program (SHBP) achieve $100 million in cost savings during the first six months of Plan Year 2026. It eliminates specific deadlines, committee processes, and fallback procedures tied to this savings target, including the need for the State Health Benefits Plan Design Committee (SHBPDC) to submit and verify cost-saving proposals. The change directly affects the SHBP and its governing committee, removing an obligation to meet this specific savings goal. The bill does not alter the program's funding or structure, only removes the mandated savings requirement. This is a procedural adjustment to the appropriations act.

Issues: ✓ Healthcare

Bill status in committee 1 of 4 stages cleared

Introduction

Dec 2025

Committee Review

Floor Vote

Governor

Introduced Dec 11, 2025 Last action Jan 12, 2026

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What changed between versions

Introduced Version → Reprint SBA 1/8/26 1R · 5 edits

MODERATE

The bill was amended from its original purpose of removing the $100 million cost savings requirement for the State Health Benefits Program (SHBP) to instead modifying that requirement by adding new provisions. The amended version retains the $100 million savings mandate but adds rules requiring the State to reimburse insurance carriers for costs associated with implementing approved cost-saving proposals, and adds a new criterion for eliminating proposals that would increase total plan costs.

Scope change

The bill shifted from eliminating the $100 million SHBP cost savings mandate to retaining it while adding new financial obligations on the State (carrier cost reimbursement) and additional criteria for rejecting proposals that would raise total plan costs.

SCOPE

The bill's purpose changed from removing the $100 million SHBP cost savings requirement entirely to modifying it. The synopsis was changed from 'remove language requiring achievement of cost savings' to 'concerning language requiring achievement of cost savings.'

FISCAL

New provision requires the State to assume and reimburse all necessary and verifiable costs incurred by a carrier for the development, implementation, administration, or compliance requirements associated with any cost savings proposals approved by the SHBPDC.

REQUIREMENT

New provision adds that cost savings proposals shall be eliminated from further consideration not only if no savings are actuarially verified, but also if the proposal would increase the total cost of the plans.

ENFORCEMENT

New provision requires carriers to submit documentation of projected and actual costs incurred to the Division of Pensions and Benefits in the Department of the Treasury (or another designated agency) in a manner and form prescribed by that division.

TECHNICAL

The explanatory statement section at the end of the bill was removed in the amended version.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jan 8, 2026

Upper · Passed

Reported out of Senate Committee with Amendments, 2nd Reading

upper

Dec 11, 2025

Introduced

Introduced in the Senate, Referred to Senate Budget and Appropriations Committee

upper

2 primary · 0 co-sponsors