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 after October 31, 2027, and later re-enters the program, they will be required to stay enrolled for an additional five years, cumulatively extending the mandatory participation period for each subsequent 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 program stability and transparency, the bill also directs the New Jersey Division of Pensions and Benefits (NJDPB) to create a participant balancing mechanism to address the financial impact of voluntary terminations. The NJDPB is tasked with notifying employers of any changes in premium rates or benefits, maintaining a publicly accessible list of employers who have terminated their participation, and publishing an annual report detailing program participation trends and the effectiveness of the balancing mechanism. Additionally, the State Treasurer is required to establish rules and regulations for enforcement and penalties related to early terminations and re-entry criteria.