Inganamort calls for collection of $50 million in delinquent health plan payments as insurance rates rise
TRENTON, N.J. — Assemblyman Michael Inganamort is calling on the Murphy administration to collect more than $50 million in delinquent health insurance premium payments owed by municipalities, school districts and other public entities, saying the unpaid balances are contributing to steep premium increases for local governments and educators.
According to information Inganamort obtained from the New Jersey Department of the Treasury, 35 local government entities and 13 school districts owed more than $50 million in overdue payments to the State Health Benefits Program as of April 2026. Outstanding balances range from a few dollars to $11.8 million, with some debts dating back to 2007.
The request comes as Aon, the actuary for the State Health Benefits Plan, announced premium increases of 22.3% for the local government plan, including a 17.3% increase for active employees, and 21.1% for the school employees plan, including a 34.4% increase for active employees.
While actuaries have cited rising costs associated with GLP-1 prescription medications as one factor driving premium increases, Inganamort said governance issues are also contributing.
“For a system already in a death spiral, $50 million in delinquencies is adding enormous downward pressure,” Inganamort (R-Morris) said. “Public employers with outstanding debts need to pay and Trenton needs to deliver on the major overhaul it’s been talking about for years.”
On July 10, Inganamort sent a letter to State Treasurer Aaron Binder requesting a plan and timeline for collecting the overdue balances and an accounting of how the delinquencies have affected the financial condition of the State Health Benefits Program.
“Municipalities, school districts, and other public employees that faithfully meet their obligations should not be placed in the position of subsidizing those that fail to do so,” Inganamort wrote. “Before imposing another round of significant premium increases, the State should aggressively pursue the collection of these overdue amounts and establish stronger safeguards to prevent future delinquencies.”
Under current state regulations, premium payments more than 31 days late are considered in default, with coverage subject to termination after 60 days. According to the information obtained by Inganamort, seven of the 13 delinquent school districts and 12 of the 35 delinquent local government entities had their coverage terminated, although it is unclear whether their plans were canceled or whether they left the state health benefits system.
“Ultimately, it’s the taxpayer who is on the hook for these costs,” Inganamort said. “Municipalities and school districts see their budgets unravel, the state does nothing to fix the problem, and taxpayers are expected to bail out the system year after year.”
Local governments delinquent as of April 2026
- Paterson — $11.8 million
- Newark — $11.4 million (terminated Feb. 1, 2023)
- Weehawken — $2.7 million
- Lawnside — $536,009.90 (terminated Jan. 1, 2018)
- Spotswood — $519,695.08 (terminated March 1, 2026)
- Lodi — $262,740.90
- Hillsdale — $179,880.59
- Prospect Park — $157,659.15
- Jackson Township Fire District No. 4 — $142,430.49
- Essex County Improvement Authority — $99,975.72
- Bridgeton City Housing Authority — $55,858.91
- Blairstown — $50,981.76 (terminated Jan. 1, 2026)
- Carteret Borough Housing Authority — $46,300.30
- Hamilton Township Fire District No. 5 — $31,421.46 (terminated Jan. 1, 2021)
- Salem City Housing Authority — $24,257.99
- Cranford — $21,253.90 (terminated Jan. 1, 2026)
- Mantua Township Municipal Utilities Authority — $19,648.86 (terminated Sept. 1, 2025)
- Atlantic City Housing Authority — $14,171.50
- Hazlet Township Sewage Authority — $14,100.26 (terminated June 1, 2009)
- Freehold Borough — $11,335.23
- Brick Township Fire District No. 3 — $9,714.67
- Wildwoods Joint Construction Office — $7,714.45 (terminated Jan. 1, 2007)
- Pinelands Commission — $5,945.64
- North Hudson Regional Fire & Rescue — $5,833.51
- High Bridge — $5,423.67 (terminated Jan. 1, 2026)
- Marlboro Township Municipal Utilities Authority — $2,842.92
- East Hanover — $2,158.04 (terminated Jan. 1, 2025)
- Westampton — $1,769.45 (terminated Jan. 1, 2025)
- Ewing Lawrence Sewerage Authority — $1,003.30
- Northvale — $441.29
- Kearny — $279.90
- Irvington Town Housing Authority (N West) — $266.54
- West Cape May — $230.05
- Manville — $59.39
- Hope — $4.04
School districts delinquent as of April 2026
- Hudson County Schools of Technology — $11.6 million (terminated Feb. 1, 2026)
- Weehawken Board of Education — $7.5 million
- Orange Board of Education — $2.4 million (terminated April 1, 2023)
- Delanco Board of Education — $386,400.86
- Red Bank Charter School — $182,882.61 (terminated Jan. 1, 2026)
- Greater Brunswick Charter School — $146,885.05
- Somerset County Educational Services Commission — $52,454.01 (terminated March 1, 2018)
- Classical Academy Charter School of Clifton — $20,337.64
- Winfield Township Board of Education — $18,270.51
- Stone Harbor Borough Board of Education — $16,002.23 (terminated Aug. 1, 2011)
- Great Egg Harbor Regional School District — $3,857.84 (terminated Sept. 1, 2013)
- Marion P. Thomas Charter School — $607.80
- North Hanover Township Board of Education — $227.61 (terminated Sept. 1, 2023)
