NJ Bill S4438

Little Silver doesn't participate in the SEHBP (State Employee Health Benefits Plan).  Why is it important to follow this bill?

S4438 would require all public school districts to participate in the SEHBP.  It is in Little Silver's best interest to advocate for ammendments to this plan so that it presents the best design and lowest premium rates possible.  

Here's how the conversation has been going:

June 18, 2026:  Alicia Aninowsky participated in a 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: 

We recently met with Senator Vin Gopal to discuss the growing impact of healthcare costs on school budgets and NJ Bill 4438. Senator Gopal explained the bill is intended to address rising costs through larger insurance pools and greater negotiating power, and acknowledged it may need revisions.

We shared that school districts have already participated in large insurance pools for years, yet costs continue to increase due to factors such as hospital consolidation, rising pharmaceutical costs - particularly GLP-1 medications - Medicaid cuts, and worsening health trends following COVID. Gary Goldfarb and Michael Mauro of Brown & Brown also shared a presentation showing the significant growth in healthcare costs, the fact that plan designs have largely been frozen since 2021, and the different impacts of Chapter 44 and Chapter 78. They explained that larger pools and wellness programs alone have not prevented rising costs and can sometimes increase risk.

Senator Gopal was receptive to this information and expressed concern that allowing Chapter 44 to sunset could make it more difficult to attract and retain teachers during a time of high living costs and teacher shortages. He said he plans to meet with major healthcare groups to better understand and address the underlying drivers of healthcare costs.

We also discussed the efficiencies Little Silver and other districts have already implemented, including shared services and careful staffing decisions. While Little Silver and Fair Haven continue to prioritize strong educational programs and competitive staffing, rising benefit costs are making it increasingly difficult to sustain current programs and staffing levels. Fair Haven, for example, has already eliminated 17.5 positions this year.

Our takeaway: Senator Gopal left with a broader understanding that larger insurance pools and wellness initiatives are already being used and are not sufficient solutions on their own.  We believe our meeting added valuable information to his perspective on the issue.

September 16, 2026:  Alicia Aninowsky and Jeanne Lauro represented Little Silver at the Garden State Coalition of Schools meeting about the health premium crisis.  The panel discussion focused on analyzing the strengths and weaknesses of bill S4438 as well as recommending ammendements to it.  

In summary, S-4438 would create a new statewide health benefits trust for New Jersey public school employees with the goal of using the buying power of many districts to control rising health care costs. While the bill could create opportunities for savings, the concerns outlined by the panel are that it does not guarantee lower costs and could limit a local district’s ability to respond to its own financial needs. For Little Silver, it is particularly important that the bill include clear cost-control requirements, protect districts from being locked into a more expensive plan, and ensure that the Trust considers the financial impact on school districts and local taxpayers, not just employees. The panel recommended changes including requiring meaningful limits on plan costs, allowing districts flexibility in participating, giving the Trust stronger tools to negotiate what hospitals and other providers are paid, requiring competitive bidding for major vendors, and increasing transparency around prescription drug costs and pharmacy benefit managers. Also discussed was a recommendation for districts to be able to revisit employee contribution formulas rather than being permanently locked in to their current structure. These changes are intended to make sure that a statewide health benefits pool creates actual, measurable savings for school districts like Little Silver rather than simply shifting costs from employees to districts and taxpayers.

The New Jersey Association of School Administrators released their concerns about the the bill on Friday, September 18, 2026.

September 25, 2026:  a 34% rate increase in the SEHBP was approved, and the NJEA has reacted by advocating for S4438:  NJ Globe article