Governor Mikie Sherrill has launched the State Health Benefits Program (SHBP) Reform Working Group, fulfilling a commitment made last month as part of her administration's agreement with 17 unions representing State employees.
The group brings together organizations representing the State, participating unions, and stakeholders with healthcare and program expertise. It will conduct a sustained review of the SHBP's structural challenges and develop concrete, evidence-backed recommendations to make high-quality health benefits more affordable and sustainable.
"From Day One, I have been focused on making New Jersey more affordable, and that means tackling hard problems instead of kicking them down the road," Sherrill said. "Rising healthcare costs affect public employees and retirees, the local governments and schools that serve our communities, and taxpayers across the state."
The working group will develop advisory recommendations for the Governor on how the State administers public employee health benefits; how provider networks are structured and paid; plan pricing, premium-contribution structures, and plan and benefit design; how employers and members participate; and whether the programs have the governance, information, and operating capacity to manage costs effectively. Dedicated subcommittees aligned with these areas will conduct deeper analysis and engage additional stakeholders.
"The Sherrill Administration is committed to making government work better by bringing people together to solve tough problems, based on data, expertise, and best practices from across the country," said Chief Operating Officer Kellie Doucette, who will lead the group.
Membership includes labor and employee organizations, healthcare organizations, current program vendors Aetna, Horizon Blue Cross Blue Shield of New Jersey and Optum Rx, public-employer organizations, and legislative offices. The administration said it will engage additional stakeholders and experts throughout the process and may add members.
New Jersey administers several distinct health-benefit programs covering State, local government and education employees, each with different plans, participating groups, governing bodies and legal requirements. Recommendations will be coordinated with parallel work on the Local Government Group and the School Employees' Health Benefits Program.
The working group holds its first meeting on October 16 and will meet regularly thereafter. Detailed design and implementation planning will continue in 2027, and any policy changes will proceed through the applicable collective negotiations, administrative, procurement, commission, legislative or other legal processes.