On Friday, Sept. 18, 2026, the New Jersey Division of Pensions & Benefits (NJDPB) notified school districts in the School Employees’ Health Benefits Program (SEHBP) of program implications should the School Employees’ Health Benefits Commission (SEHBC) fail to approve proposed Plan Year 2027 (PY27) premium rates for active employees at its next meeting on Sept. 28. 

“Concerns about significant premium increases and the lack of a long-term resolution to rising costs are valid,” said NJSBA President Michael Jacobs. “However, the commission must act now to approve the rates in order to preserve our members’ health benefits coverage and provide much-needed stability. NJSBA will continue to actively monitor this crisis.

As has previously been covered in School Board Notes, the SEHBC has failed three times to approve the 34.4 percent proposed PY27 premium rate increases for active employees recommended by Aon (the actuary for the state’s health benefits plans). A majority vote is required; the SEHBC postponed an approval vote on July 27 and deadlocked 4-4 in votes on Aug. 19 and Sept. 3. 

NJSBA Executive Director/CEO Timothy J. Purnell added, “A health plan covering thousands of school employees deserves better than an unresolved vote. Our districts count on the certainty it provides. They show up for our students every day, and they should not have to wonder whether that coverage will be there in January. This is a critical situation, but I remain hopeful the commission will find an acceptable resolution.”

NJDPB’s Sept. 18 letter stated that if the SEHBC does not approve the proposed PY27 rates at its next meeting, the SEHBP will not be an option for providing health benefits starting Jan. 1, 2027. The letter recommended that employers consult with counsel regarding legal obligations and available options for providing employee health benefits. 

NJDPB also notified SEHBP employers that regardless of the outcome of the SEHBC’s vote on Sept. 28, it will not have the necessary information to make rates and member premium share calculations available for the Oct. 1, 2026 start of Open Enrollment. Should the SEHBC approve PY27 premium rates at its Sept. 28 meeting, NJDPB will announce a new Open Enrollment period on its website. 

For additional information from the New Jersey School Boards, please see the July 15, 2026 statement by Dr. Purnell.