Trenton is trying to stem soaring local government health costs
By: Katiu Sobko
NorthJersey.com
USA Today Network - New Jersey
..... A bill that would allow state government to shift money between health benefit funds sailed from introduction to the governor's desk in just a week, as New Jersey again faces a potential increase in health benefit costs for public employees at the local level.
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Introduced in the Assembly by Speaker Craig Coughlin and in the Senate by Senate President Nick Scutari, the bill received bipartisan support in both chambers.
..... The bill comes at a time when local public employees are faced with the looming prospect of another rate increase, like the double-digit spike in costs they experienced two years ago.
..... State Senate Minority Budget Officer Declan O-Scanlon noted that Governor Phil Murphy requested this bill last week [10/23/2024] because a local public employee health benefits fund was running out pf money "on an urgent basis."
..... O'Scanlon acknowledged that the legislation is need now to prevent surprise billing to local governments but said it could be done better, such as making suer it's a one-time occurrence, and that it should com form the general fund instead of the state employees' fund.
..... A 16% or 17% spike is coming next year [2025] even with this bill, state Senator Bob Singer said.
..... Democrats like state Senate Budget chair Paul Sarlo and state Senator Teresa Ruiz agreed that there are problems with the health benefits plan and that as Ruiz said, "we have to find a better way. We have to have cost savings, because numbers are out of control."
..... Scutari said the legislation is "necessary" but that there is "more work to be done."
..... The bill would let the head of the Divisions of Pensions & Benefits temporarily move money from the health benefits fund to the dependents premium fund and employer health benefits fund if there is less than 10 days' worth of funding available.
..... The director would have to give the State Health Benefits Commission notice within 30 days of the transfer and would be able to transfer only up to 30 days' worth of funding. It has to be reimbursed within 120 days unless an extension is needed.
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Information on transfers, including outstanding balances of all transfers initiated, any repayments for past transfers received and the current balance of the employer health benefits fund, would need to be provided to the state treasurer.
..... In 2022, the State Heath Benefits Commission approved a rate increase for public employees of about 20% for local and county workers.
..... Katie Sobko covers the New Jersey Statehouse. email sobko@northjersey.com.