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Government workers see 17% kike in care

New Jersey, unions reach agreement on 2027 costs

By: Scott Fallon
NorthJersey.com
USA Today Network - New Jersey

..... New Jersey state and local government workers will pay 17% more in their health care premiums for 2027, a spokesman for Governor Mikie Sherrill said on Thursday September 3. [2026]
..... That figure was not included in a press release sent by Sherrill's office on September 2. [2026] The release said her administration had reached an agreement with 17 unions pr presenting state workers that "waives increases in state employees' health benefit contribution rates in 2027."
..... The agreement will shield workers from escalating contributions, but they will still have to pay a 17% premium increase, said Darwin Pham, a spokesman for Sherrill.
..... As part of the deal, the unions and Sherill administration agreed to launch a task force to develop "concrete evidence-backed measures to address rising healthcare costs" in the plan.
..... The State Health Benefits Program, which covers 690,000 members across its state employee. local government and education plans, has seen employee contributions climb in recent years, as it has across all sectors.
..... But local governments have begun pulling out of the state plan in an attempt to seek more affordable coverage on their own - a move that weakens the state plan.
..... Private-sector employees will be learning soon how much their 2027 premiums will cost as employers begin rolling out helaht plan options in the coming months during the annual open enrollment period.
..... But a national survey by Marsh, a benefits consultancy, showed hat employer-sponsored health plans will increase by an average of 8.2% per employee, which likely will result in employee premium deductions rising more than the average.
..... Premiums are rising by about 14% in 2027 for plans under the Affordable Care Act in several states, according to an analysis by the Kaiser family Foundation, a nonprofit health information organization.
..... New Jersey was not part of the analysis.
..... A request by NorthJersey.com for premiums submitted by private insurance to the state Department of Banking was denied in July [2026] because the information contained "trade secrets and proprietary commercial or financial information."
..... The premiums will eventually be posted on the department's website, a spokeswoman said, although it is not known when.
..... Skyrocketing ACA rates - as much as a 175% increase in New Jersey - caused at least 69,000 residents to drop coverage this year [2026] when the first bills arrived.
..... The task force will evaluate reforms and provide recommendations to Sherrill.
..... The deal was praised by unions that represent several different types of employees, from state police to college instructors.

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