A former New Jersey state treasurer is blaming years of political and policy decisions for the financial crisis facing the state’s School Employees’ Health Benefits Program, which could require a 34% premium increase for active employees next year.
Andrew Sidamon-Eristoff, who served as state treasurer under Gov. Chris Christie, argues in a New Jersey Spotlight op-ed published Friday that the proposed increase is a symptom of a broader problem with the school employee health insurance system. The program’s governing commission has deadlocked several times over proposed rates, prompting Gov. Mikie Sherrill to warn that the program may not be available in 2027 if an increase is not approved.
Sidamon-Eristoff points to declining enrollment in the program as a major factor. Citing an analysis by the state’s consultant, Aon, he notes that active enrollment fell 5% in 2024, 8% in 2025 and 18% in 2026, with another 8.75% decline projected for 2027. He attributes the trend in part to “adverse selection,” in which districts with healthier employee populations leave the system, potentially leaving behind a more expensive pool of less healthy participants.
The op-ed also traces the problem to changes in public employee health benefits under laws enacted in 2011 and 2020. Sidamon-Eristoff argues that the 2020 law known as Chapter 44 reversed key elements of the earlier Chapter 78 reforms and limited the ability of school districts to change health plan designs.
“By 2020, the phase-in of premium sharing had largely worked its way through expiring contracts, and the unions were once again empowered to bargain over contribution levels, increasing pressure on local public employers, including school districts,” Sidamon-Eristoff says.
Today, the 2026 annual cost of coverage (medical and prescription) average $37,490 per active employee, which is 88% higher than the New Jersey market benchmark of $19,940, according to AON’s actuarial analysis.
Sidamon-Eristoff says the immediate priority is avoiding disruption to school districts and employees but argues that approving a rate increase alone would not resolve the underlying financial problems. He contends that broader changes to plan design and the state’s public employee health benefits system are needed.
For a more detailed account of his analysis and recommendations, read Sidamon-Eristoff’s full op-ed in NJ Spotlight News here.
