This bill mandates that the State Health Benefits Commission (SHBC) 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, the bill stipulates that all funds received by the Division of Pensions and Benefits from this settlement must be allocated to lower the contribution amounts for public employees of employers other than the State, excluding independent State authorities.

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 the School Employees Health Benefits Commission. This legislation aims to alleviate the financial burden on public employees by ensuring that the settlement funds are directly used to lower their health care costs. The bill is set to take effect immediately upon passage.