Ch. 78 Relief Bill - SEHBP Participants
The "Educator’s Health Benefit Fairness Act" aka the "Chapter 78 Relief Bill" is making it's way through the State legislature and is expected to be passed in short order. This bill makes sweeping changes to the health plans offered in the SEHBP, as well as the contribution schedules associated with those health plans.
*The provisions of this bill apply whether you are enrolled in the SEHBP or not.
The bill applies to: local school district, regional school district, county vocational school district, county special services school district, jointure commission, educational services commission, State-operated school district, charter school, county college, any officer, board, or commission under the authority of the Commissioner of Education or of the State Board of Education, any other public entity which is established pursuant to authority provided by Title 18A of the New Jersey Statutes, but excluding the State public institutions of higher education and excluding those public entities where the employer is the State of New Jersey.
Please reference the information below as up-to-date as of the writing of this blog. This is NOT legal advice. For formal compliance please contact your School Board Attorney.
Changes Effective July 1st 2020:
Change the SEHBP renewal date from 1/1 (calendar year) to 7/1 (fiscal year)
Elimination of all SEHBP plans except:
Direct 15, and
Educators Health Plan (which is a new plan).
Special Enrollment Period:
SEHBP will host a special enrollment period prior to 7/1/2020.
A formal timeline will be provided in the future.
All SEHBP participants must participate in the special enrollment.
Those who DO NOT fill out enrollment forms will be automatically enrolled in the Educators Health Plan.
New Hire Base Plan Change:
All new NJEA members hired on or after July 1, 2020 shall be enrolled in the Educators Health Plan.
These new NJEA members will not have the ability to "buy up" to the Direct 10 or 15.
Health Plan Contributions:
Direct 10/15: Employees will contribute in accordance with local CBA.
Educators Health Plan: Employees will contribution on a percentage of salary basis:
Educators Health Plan: Benefits Summary
Similar to the Direct Zero in Prescription and Out of Network reimbursement.
Additional Reporting Requirements:
To enable tracking of health care cost savings by school districts, each school district shall submit an annual data sheet for both the current and prior year showing the following:
Total Annual Cost of Health Benefits for Active Employees,
Total Employee Cost-Sharing Contribution, and
Net Cost to the School District for Health Benefits,
Also including the following:
Number of Covered Employees,
Annual Cost Estimate Per Employee, and
Total Cost for each coverage category – Single Coverage, Parent and Child, Employee and Spouse, and Family.
In addition, school districts shall provide separate breakouts of the same categories of data for health care coverage under all health care benefits plans offered by the employer. The datasheet shall also indicate whether the school district is enrolled in the School Employees’ Health Benefits Program for medical and prescription drug benefits coverage.
Reports shall be due no later than 60 days following each enrollment period to the Department of Education, the Division of Pensions and Benefits.
Changes Effective July 1st 2021:
New Plan: Garden State Plan
Addition of a 4th plan is scheduled for 7/1/2021
Copays, deductibles, etc will be the same as the Educators Health Plan
Network will ONLY cover New Jersey providers, unless a specific type of care must be obtained in a different State
Garden State Plan: Contribution
Contributions will be 50% of the Educator Health Plan
Lowest contribution rate remains 1.5% of salary
If you have any additional questions, please do not hesitate to contact me directly.