This bill mandates that the State Health Benefits Commission (SHBC) and the School Employees Health Benefits Commission (SEHBC) utilize funds received from the 2025 New Jersey False Claims Act settlement with Horizon Blue Cross Blue Shield of New Jersey to reduce health care contribution costs for public employees and their dependents. Specifically, it stipulates that all funds received by the Division of Pensions and Benefits from this settlement must be allocated to lower the contribution amounts for health care benefits coverage under both the State Health Benefits Program and the School Employees Health Benefits Program.

The settlement requires Horizon to pay a total of $100 million to the State, with $78 million designated for distribution to the Division of Pensions and Benefits on behalf of the SHBC and SEHBC. This bill aims to ensure that these funds directly benefit public employees by decreasing their health care costs, thereby enhancing their financial well-being. The act is set to take effect immediately upon passage.