ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 6201

STATE OF NEW JERSEY

DATED:  DECEMBER 18, 2025

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 6201.

      As reported, this bill amends the language provisions in the annual appropriations act for Fiscal Year 2026 to remove language requiring the achievement of cost savings in State funds appropriated for the Employee Benefits program classification. 

      In its current form, the annual appropriations act for Fiscal Year 2026 provides that $100 million in actuarially verifiable cost savings must be achieved in the first six months of Plan Year 2026 through a series of submissions of cost savings proposals by representatives on the State Health Benefits Plan Design Committee (SHBPDC), which are to be verified by the State actuary.  If the SHBPDC fails to pass the proposals necessary to achieve the required cost savings, then the Legislature is required to revise the statutory framework set forth in P.L.2011, c.78 to achieve such savings.  Should the Legislature fail to pass a bill revising the statutory framework, then a representative of the State selected by the Governor and a public employees’ representative selected by the State employees’ and local employees’ representatives on the SHBPDC are required to select cost-saving changes to achieve the $100 million in actuarially verifiable cost savings.  If the two representatives cannot reach an agreement to achieve such savings, the Executive Director of the Office of Legislative Services is required to designate an additional representative.  The three representatives are then required to meet and vote to select cost-saving changes to achieve the $100 million in actuarially verifiable cost savings for the first six months of FY2026.

      This bill removes the language provisions requiring the achievement of cost savings for the SHBP and outlining the process for the achievement of such cost savings.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) determines that removing the language provisions in the FY 2026 Appropriations Act that require the achievement of $100 million in cost savings in State funds appropriated for the State Health Benefits Program may result in a State expenditure increase of up to $25 million.