New Jersey 2024-2025 Regular Session

New Jersey Assembly Bill A963

Introduced
1/9/24  

Caption

Sets level for healthcare benefits; requires employee contributions; prohibits reimbursement of Medicare Part B; adds member to SHBP/SEHBP plan design committees; requires retirees to purchase health benefits through exchanges; provides subsidies for out-of-pocket costs.

Impact

The proposed reforms are designed to close the gap in New Jersey's pension funding crisis by reallocating savings from reduced health benefits spending towards pension obligations. By limiting health care plans to no more than the 'gold level' as defined by federal standards, the bill seeks to align public employee benefits with those typical in the private sector, thereby reducing the financial strain on state budgets. Additionally, local boards of education are expected to use any cost savings realized from these changes to cover the health benefits of retired employees, which currently burden the state.

Summary

Bill A963 aims to reform health care benefits for public employees and retirees in New Jersey by establishing specific funding levels, requiring employee contributions, and significantly altering how these benefits are administered. The bill prohibits government entities from reimbursing Medicare Part B premiums for active public employees and certain retired employees and their spouses, a move projected to produce substantial savings. It also mandates that public employees contribute toward their health care coverage costs, establishing a baseline contribution percentage aligned with previous legislation, while allowing flexibility for districts to negotiate alternative arrangements.

Contention

One notable point of contention arising from A963 is the shift in responsibility for healthcare benefits from the state to local entities, potentially leading to disparities in how benefits are administered across different regions. Critics may argue that eliminating Medicare reimbursements could disadvantage some retirees, while proponents assert that such measures are necessary for long-term fiscal sustainability. The requirement for public employees to pay a share of their health care benefits also raises questions about the adequacy of support and care for public workers and retirees.

Fiscal context

The introduction of A963 is framed within a larger strategy to ensure New Jersey's fiscal viability. It is part of a proposal that includes returning to full pension payments and establishing a task force dedicated to implementing these reforms effectively. Stakeholders anticipate that the savings achieved through the reform of health benefits will not only support pension obligations but will also bolster the overall financial health of New Jersey's public sector benefits systems.

Companion Bills

NJ A240

Carry Over Sets level for health care benefits; requires employee contributions; prohibits reimbursement of Medicare Part B; adds member to SHBP/SEHBP plan design committees; requires retirees to purchase health benefits through exchanges; provides subsides for out-of-pocket costs.

Previously Filed As

NJ A240

Sets level for health care benefits; requires employee contributions; prohibits reimbursement of Medicare Part B; adds member to SHBP/SEHBP plan design committees; requires retirees to purchase health benefits through exchanges; provides subsides for out-of-pocket costs.

NJ A5217

Requires third-party discounts and payments for individuals covered by health benefits plans to apply to copayments, coinsurance, deductibles, or other out-of-pocket costs for covered benefits.

NJ S3818

Requires third-party discounts and payments for individuals covered by health benefits plans to apply to copayments, coinsurance, deductibles, or other out-of-pocket costs for covered benefits.

NJ A412

Permits certain retirees to choose health care coverage under traditional Medicare or Medicare Advantage plan options offered by SHBP or SEHBP.

NJ A2063

Requires SHBP and SEHBP to implement referenced based pricing program and bundled payment program.

NJ A1249

Requires SHBP and SEHBP to implement referenced based pricing program and bundled payment program.

NJ A1891

Requires SHBP, SEHBP, Medicaid, and NJ FamilyCare to cover anti-obesity medications.

NJ A5259

Requires SHBP, SEHBP, Medicaid, and NJ FamilyCare to cover anti-obesity medications.

NJ S2554

Requires SHBP, SEHBP, Medicaid, and NJ FamilyCare to cover anti-obesity medications.

NJ S1191

Requires health insurers, SHBP, and SEHBP to provide coverage for medication and treatment for hepatitis C.

Similar Bills

NJ A240

Sets level for health care benefits; requires employee contributions; prohibits reimbursement of Medicare Part B; adds member to SHBP/SEHBP plan design committees; requires retirees to purchase health benefits through exchanges; provides subsides for out-of-pocket costs.

NJ S2626

Permits State employees not covered by collective negotiations agreements to enroll in certain negotiated health care plans.

NJ A3368

Permits State employees not covered by collective negotiations agreements to enroll in certain negotiated health care plans.

NJ A5903

Makes various changes to SHBP plan offerings and governance.

NJ A1587

Limits certain payments for unused sick leave earned after effective date by public officers or employees; limits vacation leave carry-forward and requires suspension and forfeiture of certain supplemental compensation.

NJ A1808

Limits certain payments for unused sick leave earned after effective date by public officers or employees; limits vacation leave carry-forward and requires suspension and forfeiture of certain supplemental compensation.

AZ HB2903

Individual savings plan program; appropriation

MS HB1618

PERS; define "instrumentality" for purpose of PERS laws and include health care collaboratives in the definition.