TRENTON, N.J. — Gov. Mikie Sherrill has launched a working group bringing together state officials, unions, health care organizations and other stakeholders to develop recommendations aimed at improving the affordability and long-term sustainability of New Jersey’s State Health Benefits Program.
The State Health Benefits Program Reform Working Group fulfills a commitment made in September as part of an agreement between the Sherrill administration and 17 unions representing state employees.
The group will review structural challenges facing the program and develop advisory recommendations for the governor addressing areas including how public employee health benefits are administered, provider networks, plan pricing, employee premium contributions, benefit design, employer and member participation and program governance.
“From Day One, I have been focused on making New Jersey more affordable, and that means tackling hard problems instead of kicking them down the road,” said Governor Sherrill. “Rising healthcare costs affect public employees and retirees, the local governments and schools that serve our communities, and taxpayers across the state. For too long, New Jersey has responded one rate cycle at a time. We are taking a different approach by bringing stakeholders together, working from shared data, and pursuing long-term changes that preserve high-quality benefits while making these programs more affordable and sustainable. I appreciate everyone’s willingness to come to the table ready to problem solve.”
The working group will be led by Chief Operating Officer Kellie Doucette and will use subcommittees to conduct more detailed analysis, consult additional stakeholders and develop recommendations.
“The Sherrill Administration is committed to making government work better by bringing people together to solve tough problems, based on data, expertise, and best practices from across the country,” said Chief Operating Officer Kellie Doucette. “The challenges facing public employee health benefits demand that same approach. We look forward to working collaboratively to build a road map for systemic reform, using all of the levers available to us and focusing not just on the what but on the how; understanding that a plan for implementation is as important as the recommendations themselves. It is the only way to get the measurable results that employees, employers, and taxpayers deserve.”
Participants will include labor and employee organizations, health care groups, current program vendors, public-employer organizations and representatives from both parties in the state Legislature.
Labor organizations represented include AFSCME New Jersey Council 63, AFT New Jersey, Communications Workers of America District 1, New Jersey AFL-CIO, New Jersey State Policemen’s Benevolent Association, New Jersey Fraternal Order of Police, Professional Firefighters Association of New Jersey, Rutgers AAUP-AFT and Teamsters Joint Council 73, among others.
Health care organizations include the New Jersey Association of Health Plans, New Jersey Hospital Association, Hospital Collaborative of New Jersey, Medical Society of New Jersey, New Jersey State Nurses Association and New Jersey Primary Care Association.
Current program vendors Aetna, Horizon Blue Cross Blue Shield of New Jersey and Optum Rx will also participate.
Public-employer organizations include the New Jersey Association of Counties, New Jersey Conference of Mayors, New Jersey State League of Municipalities and New Jersey School Boards Association, among others. The Assembly and Senate majority and Republican offices will also be represented.
The administration said it plans to consult additional stakeholders and subject-matter experts during the process and may add members based on the expertise needed.
New Jersey administers separate health benefit programs covering state employees, local government employees and education employees. The administration said the working group’s recommendations will be coordinated with parallel work involving the Local Government Group and School Employees’ Health Benefits Program.
The working group is scheduled to hold its first meeting Oct. 16 and meet regularly afterward to develop and prioritize recommendations. Detailed design and implementation planning is expected to continue in 2027.
Any policy changes resulting from the process would still have to proceed through applicable collective bargaining, administrative, procurement, commission, legislative or other legal processes.
