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Committee releases bill extending dependent coverage for certain adults with disabilities

Financial Institutions and Insurance Committee · February 12, 2026
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Summary

The committee amended and released AB2550 to continue dependent health-benefit coverage for some adults with disabilities age 26 or older. Parent advocates told the panel the change would preserve specialist access and could save state dollars; the motion passed on a committee vote.

The Financial Institutions and Insurance Committee amended and released Assembly Bill 2550, which would require continuation of dependent coverage for certain children with disabilities who are 26 years of age or older and clarify applicability to policies delivered, issued, executed or renewed on or after the effective date.

A parent from the National Council for Sphere Autism, New Jersey, described the practical consequences of losing employer-based coverage at age 26: specialists and coordinated care could be disrupted if insurance moved to Medicaid or another plan. The witness said that, where a working spouse provides coverage, a job change after age 26 can leave medically complex adults without continuity. The witness argued the bill would save state dollars by preserving existing private coverage where feasible.

The committee recorded support from Autism New Jersey, Weizmann Children's Rehabilitation Hospital and the New Jersey Association of Community Providers, took a motion and voted to amend and release the bill. Members expressed sympathy for affected families and a desire to move the measure along for further consideration.