ASSEMBLY OVERSIGHT, REFORM AND FEDERAL RELATIONS COMMITTEE

STATEMENT TO

[First Reprint]

ASSEMBLY, No. 2550

with committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 15, 2026

      The Assembly Oversight, Reform and Federal Relations Committee reports favorably Assembly Bill No. 2550 (1R).

      This bill requires health insurers (health, hospital and medical service corporations, commercial group health insurers; health maintenance organizations, and health benefits plans issued pursuant to the Individual Health Coverage Program and the Small Employer Health Benefits Program) and group health plans that provide dependent coverage of children to continue to make that coverage available for adult children who are 26 years of age or older if:

      (1)  the child is incapable of self-sustaining employment by reason of physical or intellectual disability; and

      (2)  the child is chiefly dependent upon the subscriber for support and maintenance

      (3)  the child's condition started before the child reached the contract's age limit; and

      (4)  the child became insured by the contract before the child reached the dependent age limit and stayed continuously insured after reaching that limit.

      The bill provides that, if an insurance contract or policy is replacing another health benefits plan, and an adult child incapable of self-sustaining employment by reason of physical or intellectual disability was covered under the prior plan, the contract or policy must offer dependent coverage to the child.

COMMITTEE AMENDMENTS:

      The committee amended the bill to limit the requirement to provide coverage to adult children with conditions that started before the child reached the contract's age limit, and who became insured by the contract before the child reached the dependent age limit and stayed continuously insured after reaching that limit.

      The committee also amended the bill to provide that, if the contract is replacing another health benefits plan, and an adult child incapable of self-sustaining employment by reason of physical or intellectual disability was covered under the prior plan, the contract must offer dependent coverage to the child.