Bill

Bill > A1880


NJ A1880

NJ A1880
Permits reimbursement of COBRA health benefit costs of survivors of certain deceased public safety employees; appropriates $750,000.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill seeks to address the burdensome cost of health insurance, as provided through federal COBRA continuation coverage, by allowing the dependents of certain recently-deceased public safety employees to apply to the State Treasurer for a reimbursement of the cost of the first six months of COBRA continuation coverage. This bill addresses the concern raised by the Pension and Health Benefits Review Commission that the prior version of the bill requiring employers to continue coverage for six months after the employee's death would have made dependents ineligible for COBRA coverage altogether. COBRA continuation coverage ordinarily is available for 36 months. This bill is intended to not interfere with dependents' ability to keep COBRA coverage for this full term if desired. The COBRA reimbursement permitted under this bill applies to the spouse and unmarried children of State and local public safety employees, including State and local police, full-time, part-time and volunteer firefighters, State and county correctional officers, and members of first aid, emergency, ambulance or rescue squads, if the public safety employee died while on duty, or within 24 hours of going off duty. The COBRA reimbursement is only available so long as the dependents were covered by health insurance through the State Health Benefits Program, or otherwise through the public safety employee's employer, until the time of death. To obtain a COBRA reimbursement, any dependent, for whom the first six months of COBRA coverage ended during the previous calendar year, may apply to the State Treasurer by March 1. The bill appropriates $750,000 to the Department of Treasury for the purpose of funding COBRA reimbursements, and encourages the Legislature to appropriate sufficient funding in future years. If, during any year, the amount of funding dedicated to COBRA reimbursements by the annual appropriations act is less than the total amount applied for by qualifying dependents, then the State Treasurer shall allocate the COBRA reimbursement payments on a pro rata basis according to the amount for which each dependent has applied.

AI Summary

This bill allows the surviving spouses and unmarried children of certain deceased public safety employees to receive reimbursement for the first six months of their health insurance continuation coverage, known as COBRA (Consolidated Omnibus Budget Reconciliation Act), which is federal law allowing former employees and their dependents to continue their employer-sponsored health insurance for a limited time. Specifically, this reimbursement applies to dependents of State and local police officers, firefighters (full-time, part-time, and volunteer), correctional officers, and members of first aid, emergency, ambulance, or rescue squads, if the employee died while on duty or within 24 hours of going off duty, and the dependents were covered by the employee's employer-sponsored health insurance up until the time of death. To apply for this reimbursement, which is capped at six months of COBRA costs, dependents must submit an application to the State Treasurer by March 1st of the year following the end of their initial six-month COBRA coverage period. The bill appropriates $750,000 to the Department of Treasury for this purpose and encourages future legislative appropriations to ensure continued funding, with reimbursements being prorated if the appropriated funds are insufficient to cover all eligible claims.

Committee Categories

Labor and Employment

Sponsors (1)

Last Action

Introduced, Referred to Assembly Labor Committee (on 01/13/2026)

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