![]() ![]() ![]() Timothy Purnell, executive director of NJSBA. “NJSBA believes that the proposed premium increases are unacceptable and must be rejected,” said Dr. Under Chapter 44, employees enrolled in that plan pay a percentage of salary toward their health care, rather than a percentage of premium, as was the case under “Chapter 78.” The result is that employers will need to absorb nearly all of the cost associated with any increase in NJEHP premiums. While double-digit increases under the SEHBP plan option are problematic and unsustainable, increases in the NJEHP are particularly concerning for local boards of education. Therefore, the NJEHP will cost more next year than the most generous SEHBP option, NJ DIRECT 10, costs in the current plan year. ![]() Family coverage under the NJEHP – the creation of which was supposed to result in significant saving for employees, school districts and taxpayers – will go from $30,595 to $35,062. These proposed SEHBP rate hikes would mean that family medical and prescription coverage under NJ DIRECT 10 will increase from $34,376 in 2022 to $39,774 next year. The New Jersey League of Municipalities and New Jersey Association of Counties are also actively opposing the rate increases. The recommended rate change for active local employees is a 24% increase for medical and a 3.7% increase for the prescription drug rates, for a total increase of 21.6%. Premium increases for the State Health Benefits Program, which covers state workers and participating towns and counties, are expected to be even greater. The cost of the same coverage under the NJ Educators Health Plan, established by Chapter 44, will rise by 14.9%. Per the Plan Year 2023 Rate Setting Recommendation Analysis, “recommended rate change for Local Education Actives is a 15.6% increase for medical and a 10.8% increase for the prescription drug premium rates, for a total increase of 15.1%.” Medical and prescription drug coverage for the NJ DIRECT 10 and NJ DIRECT 15 plans will increase by 15.3%. Absent any action to alter the proposals, SEHBP premiums will increase by far more than they have in recent history. Since that time, the official rate recommendations have been posted to the Division of Pensions and Benefits’ website. School Board Notes previously reported that premiums in the SEHBP would rise significantly in 2023. Instead, that law has unfortunately resulted in increased costs for local boards of education. ![]() It also urges the Legislature to revisit the 2020 health benefits reform law, commonly referred to as “ Chapter 44,” which was supposed to reduce health care spending and generate millions of dollars in savings for school districts, employees and taxpayers. In addition to opposing the proposed rate hikes, the resolution also stresses the need for greater local school district management representation on the School Employees Health Benefits Commission and School Employees Health Benefits Plan Design Committee. NJSBA also continues to urge members to reach out directly to the governor’s office and to local legislators to inform them of the potential impact on New Jersey’s students and urge them to search for strategies to limit increases for the 2023 plan year.Ī copy of the sample resolution can be found on the NJSBA website. New Jersey School Boards Association Login Search MenuĪs more details have emerged on the proposed premium increases for the School Employees’ Health Benefits Program and State Health Benefits Program, the New Jersey School Boards Association has drafted a sample resolution boards of education can adopt to express their opposition to the exorbitant rate hikes.īoards of education are encouraged to add this resolution to their next meeting agenda and send it to the Legislature and the governor’s office. ![]()
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