Update on Ongoing Conversation with Senator Gopal

June 18, 2026:  Alicia Aninowsky participated in a continued conversation with Senator Gopal, Fair Haven BOE President Michelle Buckley, and insurance experts Gary Goldfarb and Michael Mauro about how the increased costs of medical benefits is affecting public school district budgets.  Here is her update: 

Most of the conversation focused on NJ bill S4438.  Senator Gopal stated he believes the bill was introduced quickly and will need many edits, but it recognizes the impact health benefits are having on school budgets.  It was written on the theory that larger insurance pools could help reduce costs. We explained that districts have already participated in large pools for years, yet costs continue to rise due to factors such as hospital system consolidation, pharmaceutical costs (particularly GLP-1 medications), Medicaid cuts, and worsening health trends following COVID when people didn't receive preventative care.  Mr. Goldfarb and Mr. Mauro shared a NJSBA presentation they had made showing the growth in healthcare costs, the fact that plan designs have been largely frozen since 2021, and the differing impacts of Chapter 44 compared to Chapter 78. They also explained that larger pools do not necessarily lower costs and can sometimes actually increase risk.

Sen. Gopal was very interested in this information. He expressed concern that allowing Chapter 44 to sunset and negotiating plan design could make the teaching profession less attractive during a period of high cost of living, increased demand for working from home, and teacher shortages. At one point he asked, “Is the ask consolidating plans or making teachers pay more?”

Mr. Goldfarb and Mr. Mauro encouraged him to instead focus on the underlying drivers of healthcare costs, noting that larger pools and wellness initiatives have already been tried and have not prevented significant cost increases. Sen. Gopal shared that he will be meeting with Horizon, Aetna, the NJ Hospital Association, Conner Strong, and RWJBarnabas to continue learning about all the facets of this issue.

Mrs. Buckley and I emphasized the efficiencies districts have already implemented, including shared services and careful staffing decisions. We also discussed the importance of remaining competitive in recruiting strong teachers. Unlike some districts, we are not limiting new hires to those who would be Step 1 on the salary guide, but the benefits crisis is making it increasingly difficult to sustain current programs and staffing levels. Fair Haven has already eliminated 17.5 positions this year, and Little Silver is approaching a deficit situation if benefits continue to rise as they have. He appreciated hearing that our focus remains on maintaining excellent educational programs and positive working environments, and acknowledged how hard it is to continue prioritizing what our communities expect.

The State Health Benefits Program will release next year's rates and data on July 8. Mr. Goldfarb and Mr. Mauro will follow up and review that information with Mrs. Buckley and me once it's out, and Sen. Gopal said he is very open to continuing the conversation afterward if we have any updates to share.

My takeaway is that he left with a better understanding that larger health insurance pools and wellness initiatives are already in place and are not sufficient solutions on their own. He agreed that allowing Chapter 44 to sunset may be part of the solution for school budgets, but that addressing the underlying cost of healthcare is really the critical piece.  Overall, I feel good about the discussion and think we helped steer his perspective on the issue!  

Please check back here for any more updates as they develop.