CWA Blasts Treasury Report on SHBP, Slams Gross Mismanagement by the State and Efforts to Take Away Healthcare from Working People

For Immediate Release: Tuesday, May 20, 2025
Contact: Moira Bulloch, mbulloch@cwa-union.org

CWA Blasts Treasury Report on SHBP, Slams Gross Mismanagement by the State and Efforts to Take Away Healthcare from Working People

TRENTON, NJ - The Communications Workers of America (CWA) union strongly rejects the New Jersey Department of Treasury’s attempt to wash its hands of the deepening crisis in the State Health Benefits Program (SHBP), threatening healthcare for hundreds of thousands of public sector workers. 

In a newly released report, the Treasury Department declares that the SHBP has reached a breaking point, becoming unsalvageable due to shrinking enrollment, governance concerns and increasing costs. While CWA agrees the SHBP needs massive overhaul, the report is nothing more than a deflection of blame by the very entity that has mismanaged the system for over a decade and a refusal to address the real drivers of increasing costs and long term instability: profit-driven healthcare. 

“Let’s be clear: the SHBP is in serious trouble and immediate, bold reforms are necessary,” said Dennis G. Trainor, Vice President of CWA District 1. “Treasury’s answer to this crisis is to scapegoat public sector workers — the very people who keep our communities running — instead of taking on the powerful corporate interests that are bleeding the system dry and overcharging taxpayers by millions of dollars every year.” 

CWA has repeatedly pushed back against the administration's attempt to shift costs onto workers and reduce the quality of care. Just last year, CWA and other public worker unions gave the Administration nine proposals that could have saved well over $200 million. The State rejected all of them and continued to prioritize the price hikes set by insurance companies.  

CWA has fought for common-sense cost control and solutions like claims auditing, enforcing existing contracts with insurance carriers, and fair pricing that would rein in the costs of care overall, generating enormous savings for the State, local governments, and workers. Instead, Treasury has sidelined labor voices, shut down opportunities for meaningful reform, and allowed hospital CEOs to pad their margins at the expense of public workers and local governments.

CWA is calling on State leadership to reject false narratives and embrace real solutions that rebuild a health benefits system that delivers on its original promise: high-quality, affordable care where the State uses its size and bargaining power to set prices and control costs. 

Public sector unions including CWA, AFSCME NJ, the NJ AFL-CIO, AAUP-AFT, AFT New Jersey, The Council of New Jersey State Colleges, URA-AFT, HPAE, IFPTE Local 195, IFPTE Local 194, IFPTE Local 196, and IFTPE Local 196-12 are calling on the State legislature to pass a comprehensive healthcare reform bill that will address affordability and rapidly rising costs, and increase governance and transparency in the State health plan. 

“Our members didn’t create this mess — but we’re the ones being asked to pay for it,” Trainor added. “Based on the poor track record of mismanagement by the State, it’s not surprising that this report sides with the insurance carriers and hospitals charging unsustainable prices rather than the workers and local governments paying the bills. We need bold leadership and serious partnership to fix the SHBP. That starts with honesty, accountability, and a seat at the table for the workers who have the most at stake.”

Since 2022, healthcare premiums for State workers have increased by 40% while local government workers have seen a 59% compounded increase. The unions representing State and Local government employees say that these drastic increases are untenable for the workers, and are a core driver of the affordability crisis facing New Jersey’s public sector working families. 

“CWA and other unions continue to offer real solutions including measures other states have used to negotiate better prices with insurance carriers, control year over year increases, and provide high quality healthcare to thousands of working families,” said Rebecca Miller, Legislative Director, CWA District 1. There is enormous potential to reduce costs through partnership instead of playing the blame game.” 

Controlling costs and making healthcare more affordable for tens of thousands of workers will reduce costs for taxpayers, 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.

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The Communications Workers of America represents working people in telecommunications, customer service, media, airlines, health care, public service and education, manufacturing, tech, and other fields. CWA represents roughly 75,000 public sector workers throughout New Jersey.