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HEALTH BENEFIT INCREASES

In light of the fact that the Administration and State Legislature have yet to agree on providing any immediate financial relief or long-term structural reforms to address the 24% increase in health benefit expenses imposed by the State Health Benefits Program (SHBP), NJAC is exploring the possibility of establishing county health insurance funds in the northern, central, and southern regions of the State as permitted under current law.

According to information shared by PERMA Risk Management Services, the advantages of health insurance funds include: the ownership and governance by members as opposed to SHBP where local governments have no voice in the decision-making process; stable and renewable premium rates unlike what occurred this past year; and,early renewals to assist with budgeting timeframes instead of having to pay for certain data as is the current practice. Moreover, health insurance funds provide for lower operating expenses and annual profits; the flexibility to maintain or alter plan designs;the potential for dividend distributions; premium rates determined in the best interest of members by the fund’s actuary; and, all professionals selected and appointed by fund commissioners subject to public bidding requirements. PERMA further submits that health insurance funds have a documented track record of stability and strong financial performance that offer an effective long-term solution for managing and delivering employee health benefits.

As you may recall, late last year, NJAC, the New Jersey State League of Municipalities (NJLM), the New Jersey Conference of Mayors (NJCM), the AFL-CIO, the CWA, the PBA,and many more, joined forces in an unprecedented coalition of management and labor to make fair and equitable recommendations that would have mitigated the $350.0 million in health benefit rate increases approved by the State Health Benefits Commission (SHBC) in September of 2022. In addition to providing immediate financial relief to property taxpayers, local governments, and public employees already struggling to make ends meet, the reasonable and attainable solutions included much needed structural reforms that would have resulted in substantial long-term costs savings. As noted above, the Administration and State Legislature have yet to agree on a solution.   150 West State Street · Trenton, New Jersey 08608 · Phone 609-394-3467 · Fax 609-989-8567 · www.njac.org

UPCOMING NJAC EVENTS: Don't miss NJAC's Annual Celebration of County Government set

for May 3 rd through May 5th at Caesar's in Atlantic City. Please visit our website at

www.njac.org for additional details and the action-packed schedule of events.

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