Legislation sponsored by Assemblywomen Rosy Bagolie, Shanique Speight, and Carmen Morales would allow continuation of health benefits coverage for young adults with physical or intellectual disabilities who are chiefly dependent on a parent or guardian for support and maintenance. The bill, A2550, cleared the Assembly Financial Institutions and Insurance Committee last week.
Under current New Jersey law, coverage may continue for a dependent adult child after age 26 while the parent remains with the same employer; however, if the parent changes employers, the new employer is not required to offer continued coverage for that dependent adult child over age 26. Bill A2550 would require health insurers and group health plans that provide dependent coverage to continue to make that coverage available.
Read more: Bill to Protect Health Coverage for Adults with Disabilities Clears Committee“Turning 26 should not mean losing access to critical care for individuals who cannot live or work independently,” said Assemblywoman Bagolie (D-Essex, Passaic). “This bill is about protecting residents. It would close a dangerous gap in our law and would give families the stability and peace-of-mind they deserve.”
Currently, many adults with disabilities rely on NJ FamilyCare, the State’s Medicaid program, for health coverage. Yet not all physicians and specialists who accept private insurance accept Medicaid, leaving many individuals without access to care.
Recent federal Medicaid funding reductions enacted under the federal 2025 Budget Reconciliation Act have placed additional financial strain on states, putting hundreds of thousands of New Jersey residents at risk of losing coverage.
“Families with individuals with disabilities are already navigating complex medical and financial realities,” said Assemblywoman Speight (D-Essex, Hudson). “With uncertainty surrounding federal Medicaid funding, we must ensure there is a reliable safety net in place so individuals with disabilities are not left without care.”
“This legislation is about protecting access to care and preserving dignity,” said Assemblywoman Morales (D-Essex). “New Jersey has long been committed to supporting residents with disabilities, and this bill would reinforce that commitment by ensuring coverage does not disappear because of a job change or shifting federal policies.”