Public workers could see benefits change

Lawmakers working to prevent premium spike

By: Katie Sobko
NorthJersey.com
USA Today Network - New Jersey

..... Change could soon come to the state's health benefit plan program. After last year's [2022] unprecedented premium increases for public employees, lawmakers seen to be looking for a way to prevent a repeat.
..... Senate President Nick Scutari, D-Union, and budget Chair Paul Sarlo, D-Bergen, have introduce a bill that would allow the two health benefit programs for public workers to pick more than on claims administrator, as a way to increase competition and lower costs.
..... The two programs the State Health benefits Program and the School employees' health benefits Program, would have to provide claims data to governments if they ask for it, in an effort to "increase transparency and accountability."
..... Scutari said in a statement that this will "help reduce costs for employees, government and taxpayers with reforms that will make the system more effective."
..... "The cost of health care benefits for public employees is becoming unfordable and unsustainable," he said. "We can reduce expenses by allowing more competition among the claims administrators, Offering greater choice and allowing more access to claims data will also bring more transparency tot he process."
.... John Donnadio, executive director of the New Jersey Association of Counties, said that although the group hasn't finished reviewing the bill yet, it would support legislation that "helps to save taxpayer dollars and provides additional flexibility, transparency and accountability in providing quality health benefits to employees."
..... Lawmakers on both sides of the aisle have said Treasury officials were not "forthcoming" last year [2022] with information about just how much of an increase employees would see in their health insurance rates and when those officials knew how big the increase would be.
.....Typically, the state's plan design committee members discuss what is covered and how, then approve the plan. The State Heath Benefits Commission is charged under statute with setting the premiums for the plans within the program each year.
..... Those rate increases weren't made public until July,[2022] when the rate renewal report was released as the commission prepared to vote.
..... The plan covers more than 816,000 public employees statewide, both active and retired.
..... Five unions of state government employees made deals with Murphy's administration that require them to pay only 3% more - with taxpayers covering an 18% hike. the same deal was not made for the local and county employees in the plan.
..... But there are more than 700 county and municipal governments enrolled in the State Health Benefits Plan.
...... Those employees didn't get the same deal, and those agencies were forced to decide whether to remain in that plan or look for other options as they faced potential increases of a staggering 20% or more.
..... Those increases were based on an analysis of previous coverage levels, trends to service usage and inflation.
..... New Jersey and local governments and school districts that participated in the State Health Benefits Program expect to spend $3.8 billion on health coverage in 2023, their share of the $5.2 billion in total health costs for these employees, the state Department of the Treasury said last year. [2022]
..... Adm even though Governor Phil Murphy convened a State Health Benefits Quality and Value Task Force to study how to manage costs better in 2019, the state's appropriation this year [2023] is about $600 million more than it was than.
..... Murphy's proposed budget for fiscal year 2024 include $200 million in relief for local governments.
..... Officials said this could be used by local governments to cover cost increases already incurred in 2023 or as a starting point to cover potential increases in 2024.
..... It is available for municipalities that are in the State Health Benefits Program as well as towns that use other plans. The budget also includes $280.5 million to cover state health benefits.
..... Senator Joseph Vitale, D-Middlesex, and Nellie Pou, D-Passaic, have already sponsored legislation to try to make health coverage more affordable by making the small business insurance market more competitive, The bills they sponsored would remove a requirement that insurers offer individual plans in the small-employer market and would lift a five-year ban on carriers' reentering that market and the one for small businesses. Another bill would require the Division of banking and Insurance to study market reforms to make coverage more affordable for small businesses.
..... Those bills have passed the senate and must clear the assembly before being sent to the governor's desk for consideration.

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