ASSEMBLY, No. 1074

STATE OF NEW JERSEY

222nd LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

 


 

Sponsored by:

Assemblyman MICHAEL VENEZIA

District 34 (Essex)

 

 

 

 

SYNOPSIS

     Requires SHBP and SEHBP commissions to use funds from 2025 False Claims Act settlement with Horizon to lower public employee health care contribution costs.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel.

  


An Act concerning funding for public employee health benefits and supplementing P.L.1961, c.49 (C.52:14-17.25 et seq.) and P.L.2007, c.103 (C.52:14-17.46.1 et seq.).

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.  Notwithstanding any other law, rule, or regulation to the contrary, all monies received by the Division of Pensions and Benefits on behalf of the State Health Benefits Program from the 2025 New Jersey False Claims Act settlement between the State and Horizon Blue Cross Blue Shield of New Jersey shall be used to lower the contribution amount paid by public employees of the State and public employees of employers other than the State for health care benefits coverage in the State Health Benefits Program for the employee and any dependents.

 

     2.  Notwithstanding any other law, rule, or regulation to the contrary, all monies received by the Division of Pensions and Benefits on behalf of the School Employees’ Health Benefits Program from the 2025 New Jersey False Claims Act settlement between the State and Horizon Blue Cross Blue Shield of New Jersey shall be used to lower the contribution amount paid by employees for health care benefits coverage in the School Employees’ Health Benefits Program for the employee and any dependents. 

 

     3.  This act shall take effect immediately.

 

 

STATEMENT

 

     This bill requires the State Health Benefits Commission (SHBC) and the School Employees’ Health Benefits Commission (SEHBC) to use the proceeds of the 2025 New Jersey False Claims Act settlement between the State and Horizon Blue Cross Blue Shield of New Jersey to lower the cost of health care contributions for public employees and dependents who receive health care coverage through the State Health Benefits Program and the School Employees’ Health Benefits Program.

     Under the settlement, Horizon is required to pay a lump sum of $100 million to the State within 25 calendar days of the effective date of the agreement.  Of that amount, $78 million will be distributed to the Division of Pensions and Benefits in the Department of the Treasury on behalf of the SHBC and SEHBC.