New Jersey Assembly Bill A2210

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Permits certain cities to transfer a portion of its public employees from a locally-administered health benefits program to SHBP.

Impact

The proposed changes under A2210 are expected to significantly impact the management of health benefits for employees in large municipalities. By permitting selective transfer, the bill could result in cost savings for the municipalities, eliminate redundancy in employee health benefits administration, and potentially enhance the quality of benefits offered through statewide resources. Local governments will be able to tailor their health benefit strategies to better fit their needs without losing the benefits of statewide programs.

Summary

A2210 is a New Jersey bill that seeks to amend the existing state health benefits program laws to allow certain municipalities to transfer a portion of their public employees from their locally-administered health benefits programs to the State Health Benefits Program (SHBP). Currently, municipalities with their own health benefits can only transition all employees to the SHBP, leading to potential logistical challenges and employee dissatisfaction. This bill aims to provide more flexibility by allowing municipalities of the first class, which have populations exceeding 150,000, to selectively transfer employees while retaining others under local plans.

Contention

While the bill has its proponents who argue it enhances flexibility and efficiency in employee health benefits administration, there could also be concerns regarding the uniformity and equity of health coverage for municipal employees. Critics may argue that it could lead to disparities among employees based on whether they were transferred to the SHBP or not, potentially affecting morale and equity within the workforce. Furthermore, the requirement for municipalities to give a 45-day notice prior to any changes may lead to disputes related to employee transitions and integration into the SHBP.