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Pension & Health Benefits

Posted on: December 1, 2023

Governor Conditionally Vetoes SHBC Claims Administrators Bill

On Monday, Governor Murphy conditionally vetoed S-3756 ScsSa that permits the State Health Benefits Program (SHBP) to award contracts for more claims administrators and requires claims data and trend reports to be provided to certain persons.

The proposed changes within the Governor’s conditional veto include revising language to account for the fact that the procurement of a third-party administrator has been delegated by the SHBC and the School Employees Health Benefits Commission (SEHBC) to the Division of Purchase and Property (DPP), better aligning the bill’s definitions section with the definitions in current law and the bid solicitation, and ensuring that one bid solicitation can cover plans issued under both the SHBP and SEHBP. Additionally, the Governor’s proposed amendments remove references to fully insured Medicare Advantage plans, which fall outside the scope of the current bid solicitation as these plans do not utilize the services of a third-party administrator.

The League supports this legislation because it can help municipalities access data. It is not yet clear whether the Legislature will act on the Governor’s recommendations.

Contact: Paul Penna, Senior Legislative Analyst,, 609-695-3481, x110.

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