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NJ's Public Workforce Needs Reform NOW.

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

We expect the next round of double-digit healthcare rate increases for both state and local government to be announced by mid-July, and we need a real path to address increasing costs that protects our members and local governments. 

S.4516 (Lagana) / A.5337 (Verrelli) would gives us a way to do just that. This bill would make real progress, and already has broad support from labor and local government allies. With the next rate hike only weeks away, we need better governance and transparency to meet the challenge, and we need our legislative leaders to work with us to make it happen.

What the S.4516 (Lagana) / A.5337 (Verrelli) does:

GOVERNANCE: Reforms the State Health Benefits Commission to ensure equal representation, faster decision-making, and a seat at the table for local government.

  • Changes the State Health Benefits Commission and Plan Design Commission to a single commission made up of 13 members. The 13th member is non-voting and must have expertise in the administration and design of healthcare plans. Labor and management are co-chairs. Local government management has a seat. All members are fiduciaries.
  • If the Commission reaches an impasse, it goes to expedited arbitration.
  • Gives the Commission the authority to establish requirements for review of in-state and out-of-state medical claims. 

TRANSPARENCY: Requires greater transparency, giving stakeholders the data needed to manage the plan more effectively.

  • Increases transparency of reimbursement rates and claims and other information all parties need to control costs.
  • Defers cost controls and plan design controls to the Commission - no changes to plan designs in the bill.
  • No change to chapter 78 contribution rate paid by employees. 

New Jersey's legislative leaders must stand with working families and support passing S.4516 (Lagana) / A.5337 (Verrelli) to help fix the State Health Benefits Plan by June 30th!