The rate increases exceed 20% for state health plans beginning in 2023.
NJ public workers, along with others, rally against increase in health insurance rates. The rally was organized by CWA and held at the Statehouse Annex, in Trenton, September 13, 2022.The State Health Benefits Commission on Wednesday approved rate increases of about 21% on state worker health plans and nearly 23% on local government benefits.
After Wednesday’s vote, five labor unions issued a joint-statement saying they had reached an agreement with Gov.administration that will limit the increase on state employee contributions to 3%, shifting the rest of the financial burden to the state. “We’re hopeful this agreement will be a template for local government employees,” said Steve Tully, executive director of the American Federation of State, County and Municipal Employees Council 63.“Recognizing the effect a significant rate increase would have on working families, the governor has worked closely with State unions to help mitigate the costs of this increase on state employees,” Peace said.
“If these rates go through, we’re going to have a massive exodus from local government,” Burge said during Wednesday’s meeting. “I don’t see any way it can’t happen.” “What I think you will see is local governments looking for more cost effective options,” Cerra told NJ Advance Media. “Unless the administration steps in here and offers parity...that’s going to be the outcome. The action today is profoundly shortsighted.”
Ripple effects from the COVID-19 pandemic are causing health insurance rates to rise nationwide in both the public and private sector. But the size of the increase in New Jersey is two to four times larger than average increases seen in other states, and it is about 20 points higher than typical yearly rate adjustments.
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