Our Fight for Affordable Healthcare in New Jersey!

New Jersey’s public sector workers in State and Local Governments deserve access to affordable, high-quality healthcare. We need reform NOW to rein in skyrocketing healthcare costs that are crushing New Jersey’s working families. 

THE PROBLEM 

  • New Jersey has higher healthcare spending compared to the U.S. overall - and continues to rise faster than the rest of the country. 
  • This higher spending is not leading to higher quality care or better outcomes - and it’s not because of more utilization. Studies show that high prices are to blame - enriching hospital CEOs and health insurance companies at the expense of working people.
  • As premiums increase, so do worker contributions. “Chapter 78” set up a mandatory contribution schedule as a percentage of premium, meaning public sector workers are held hostage to these skyrocketing costs. 
    • Since 2022, healthcare premiums for State workers have increased by 40% while local government workers have seen a 59% compounded increase. This is unsustainable - and unacceptable.
    • A typical local government employee earning $65,000 is currently paying over $8,000 for a family plan.  With the 2025 increases in premiums, that same employee will pay over $9,600 for that same plan this year, effectively wiping out or significantly reducing any wage increases. 
  • The cost of healthcare is impacting local governments, increasing property tax rates and driving local governments out of the State Health Benefits Plan.
  • The premium increases are significantly higher than increases in other large public healthcare plans across the country, raising questions regarding the performance of our plan, the prices for medical services charged by our carriers, the State’s ability to manage the plans, and the reliability of the State’s third-party actuary.
  • Controlling costs and making healthcare more affordable for tens of thousands of workers will reduce costs for taxpayers, help keep local governments in the State Health Benefits Plan, save State and Local government money, and ensure that New Jerseyans who have dedicated their careers to supporting the State have access to the affordable, high-quality healthcare that they deserve.

THE SOLUTION 

  • CWA is working to introduce legislation that will:
    • AFFORDABLE PREMIUMS for public sector workers
      • Establish affordable employee contribution rates and quality plan designs for plans in the State Health Benefits Plan 
    • FAIR PRICING to contain the rising prices of healthcare services and medications but protect against cost-shifting to working New Jerseyans
      • Implement Reference Based Pricing, modeled after Oregon, which sets reimbursement rate caps at 200% of Medicare rates, for out and in-network providers, resulting in massive savings. Current estimates show that this would result in approximately $1.1 billion in savings. 
    • GOVERNANCE AND TRANSPARENCY by reconfiguring the State Health Benefits Commission and Plan Design Committee to create more equal governance, require increased transparency and ensure more effective administration of the State plan. 

THE ASK: 

  • Stand with New Jersey’s working families and support this three-pronged proposal to address healthcare affordability, cost control, and governance & transparency for public sector workers
  • This bill is currently pending introduction