This bill mandates that any employer, excluding the State, that opts to participate in the State Health Benefits Program (SHBP) or the School Employees Health Benefits Program (SEHBP) after October 1, 2026, must remain enrolled for a minimum of five consecutive plan years. If an employer voluntarily terminates their participation in either program after October 31, 2027, and later re-enters, they will be required to stay enrolled for an additional five years, cumulatively extending the enrollment period for each subsequent termination and re-entry. This means that an employer could be required to remain enrolled for up to 20 years or more, depending on the number of times they re-enter the program.

To ensure fiscal accountability and transparency, the New Jersey Division of Pensions and Benefits (NJDPB) will develop a participant balancing mechanism to address the financial impact of voluntary terminations. The NJDPB is also tasked with providing timely notifications to employers regarding changes in premium rates and maintaining a publicly accessible list of employers who have voluntarily terminated their participation. Additionally, the NJDPB will publish an annual report detailing employer participation trends and the effectiveness of the balancing mechanism, while the State Treasurer will establish necessary rules and regulations for enforcement and re-entry criteria. The bill is set to take effect on October 31, 2027.