New Jersey's Health Benefits Program in Crisis: What's Next?

New Jersey is facing a major problem with its State Health Benefits Program.

• Coverage: Nearly 150,000 county and local government workers.
• Current Situation: Running out of money, possible collapse next year.

Governor Phil Murphy's Plan

• Financial Rescue: $260 million from the state to pay off debts and create a reserve fund.
• Worker Impact:
• Higher insurance costs.
• Fewer plan choices.

Rising Costs and Consequences

• Premium Increase: 59% in the last three years.
• Result: Many counties and towns have left for cheaper options.
• Current Members: Smaller, sicker group, worsening financial situation.

Governor's Announcement

• Urgent Action Needed: Without intervention, many could lose health care access.
• Approval Needed: State Legislature must approve the plan.
• Time Constraint: Governor Murphy leaves office in January.

Worker Reactions

• Concerns: Significant increase in out-of-pocket costs.
• Doctor visits: 3 times more expensive.
• Emergency room care: 4 times more expensive.
• Demands: Address root causes of rising health care costs.

State's Cost-Saving Measures

• Reduced Plans: From 50 to 6.
• New Commission: To oversee the program, including municipal employers.

Legislative Perspective

• Potential Compromise: Changes needed to control costs and stabilize the program.
• Balancing Act: Ensure workers retain good health insurance.
• Final Decision: Negotiations between lawmakers, labor leaders, and local officials.