SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

ASSEMBLY, No. 5459

STATE OF NEW JERSEY

DATED:  DECEMBER 15, 2025

      The Senate Budget and Appropriations Committee reports favorably Assembly Bill No. 5459 (1R).

      As reported, this bill extends the time period in which newly born children are covered under their parents’ health benefits coverage to 90 days after birth.  Current law limits the coverage of newly born children to 60 days from their birth.  At the conclusion of the 60 days, the child will be without coverage, unless the parents enroll the child in a private health benefits coverage policy or in a State or federal program, such as NJ FamilyCare.

      As reported by the committee, Assembly Bill No. 5459 (1R) is identical to Senate Bill No. 4983, which was also reported by the committee on this date.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) estimates that extending the time period in which to enroll newborn infants in health coverage as a dependent may potentially result in some costs shifting to private insurance that would otherwise be borne by the State’s Medicaid program, NJ FamilyCare.

      The OLS does not have access to data on the number of newly born children likely to be affected by the bill, and cannot anticipate the cost or quantity of medical services that might be shifted from the State to private payers.  Any decrease in NJ FamilyCare expenditures will also decrease State revenues, in the form of federal reimbursements for State expenditures under the federal Medicaid program and the Children’s Health Insurance Program.