NJ school employees face a 34.4% average health premium increase in 2027, with some plans rising 45.1%. See rates and enrollment dates.
TRENTON, NJ – Active school employees enrolled in New Jersey’s state-administered health benefits program face an average 34.4% premium increase in 2027, with larger increases for two traditional plans, according to the state’s approved rate analysis.
The School Employees’ Health Benefits Commission approved the rates Sept. 25. The Division of Pensions & Benefits announced Sept. 29 that open enrollment will run Oct. 26 through Oct. 31. Additional enrollment information will appear on the division’s website and in mynjbenefitshub.
The average does not describe every plan. The approved Aon analysis lists these combined medical and prescription premium increases for active employees:
| Plan | 2027 premium increase |
|---|---|
| PPO10 and PPO15 | 45.1% |
| New Jersey Educators Health Plan | 31.6% |
| Garden State Health Plan | 32.2% |
| Active employees overall | 34.4% |
These are insurance premium changes. They do not establish the same percentage increase in every employee’s paycheck deduction, nor do they establish a particular property-tax increase in any district.
The analysis includes money to repay an anticipated $70 million state transfer and rebuild the program’s claims reserve. Even with that funding, the projected reserve would cover one month of claims costs at the end of 2027, below the two-month target. Aon also assumes active enrollment will decline 8.75% next year.
That shrinking enrollment helps explain why a rate increase alone may not settle the program’s financial problems. As districts with less expensive claims leave for other insurance arrangements, the remaining pool can become more costly to insure.
The New Jersey Monitor reported that the commission voted 4–2 after nearly two months of deadlock. State officials had warned districts that coverage could not be offered in January without approved rates. Union representatives warned that another large increase could encourage more districts to leave and deepen the financial strain.
For northern New Jersey school employees, the first question is whether their district participates in this program. The state’s decision applies to participating plans; it does not set premiums for every school district’s independently purchased coverage. Employees comparing options can use the state’s published plan rates and their district’s contribution information during the October enrollment period.