>https://www.nj.com/news/index.ssf/2009/07/health_insurance_rates_for_nj_1.html
Posted by ksantiag July 22, 2009 21:11PM
TRENTON — Health insurance premiums for public employees in more than 250 school districts will rise by 25 percent next year, after a state commission voted to approve it today.
The State Health Benefits Commission also approved a 16 percent premium increase for local governments.
State officials and Aon, a consulting firm hired by the state, say the higher rates for the schools is due to the rising cost of health care nationally, a change in benefits, and an increase in employees using the plan.
“We’re still talking double digits here and it is steep,” said Frank Belluscio, a spokesman for the New Jersey School Boards Association.
The consultant projects health care for school district employees will cost $1.84 billion next year.
Nearly 300,000 current and retired school employees are enrolled in the state program, created expressly for districts last year. The number of employees enrolled went up 33 percent this year.
Belluscio said the difference between the high cost of private health care coverage and the state’s plan “brought in many new members.”
But the school district employee health benefit program still cost the state $45 million last year.
Tom Vincz, a spokesman for Treasury, said the money went toward reducing premiums for school districts. But the commission decided against reducing premiums that way this year.
“The recommendation from the consultant was to not do that,” said Vincz.
The commission approved the rate increase recommended by Aon.
William Dressel, executive director of the New Jersey League of Municipalities, said if the state doesn’t help towns with the rising cost of premiums, residents will see an increase in property taxes, municipal layoffs and fewer services.
“We have previously asked state leaders to consider providing property tax relief,” said Dressel. “We repeat that request and we are willing to consider any workable alternatives.”
https://www.nj.com/news/index.ssf/2009/07/health_insurance_rates_for_nj_1.html