JUNE 21, 2015, 10:43 PM LAST UPDATED: SUNDAY, JUNE 21, 2015, 10:48 PM
BY SALVADOR RIZZO
STATE HOUSE BUREAU |
THE RECORD
Hundreds of thousands of public workers began paying more for their health care benefits after Governor Christie overhauled the system in 2011 — a massive shift that would save New Jersey taxpayers $3 billion over 10 years, administration officials said at the time.
But just four years in, instead of the expected savings, state and local taxpayers are staring at the prospect of footing more of the bill for those medical coverage plans.
The reason: Tucked inside the sprawling 2011 reform law is a sunset provision that says the higher payments required of public workers will expire in four years. After that, the provision says, all health care costs must again be negotiated at the bargaining table as union contracts come up for renewal.
For much of the workforce, that change kicks in at the end of this month.
So New Jersey’s powerful labor unions are gearing up for contract negotiations at all levels of government — from the state to counties, municipalities and school boards — with one unifying goal: to reduce health insurance costs as much as possible for their members.
https://www.northjersey.com/news/n-j-health-care-deal-expiring-1.1360313
Socialist are patient… they play long ball and play it well, never taking their eye off the prize.
It’s okay, they’ll all be paying a lot more of will lose their platinum level coverage. The ACA’s 40% excise tax kicks in on platinum level plans from 2018, so any contract signed from here on will have to account for that extra cost.
And there he is!
Another job well done by our absentee governor.
I hope the union can get increased prescription coverage so I can get more viagera polls.
Group health insurance for the Village rose a significant 10% in this year’s budget, even more than the 9% increase in NJ Transit fares. Yet there’s no inflation, and economic growth is slowing to under 2% according to the Fed. And yet taxpayers bear all of the annual cost increases for healthcare, not the employees or retirees, right 5:37? That includes a 40% excise tax increase from 2018 for “platinum” level health coverage under the ACA. 90% of NJ public workers and retirees under 65 have “platinum” coverage as defined by the ACA, right 5:37? Time to downgrade to “bronze”.
Looks like the union toadies are back PJ. 5:37 has probably been retired since his early 50s and gets a $26,000 annual comprehensive family health plan for the low, low out of pocket maximum of $480 a year. The rest of that coverage? Paid for by Village taxpayers who saw their group health insurance bill rise 10% this year for Village employees despite the overall Village budget only increasing 1.2%
So the unions are dragging their feet on contract negotiations at all levels of government – from the state to municipalities and school boards – to reduce health insurance costs as much as possible for their members? Translation: to increase health insurance costs as much as possible for taxpayers who subsidize all of the annual increases in health insurance premiums already. The Village is already paying an extra $35,000 in legal expenses for PBA negotiations which have dragged on long after the Fire contract was settled, and the Village’s Group Health Insurance cost have also risen significantly higher (+10%) versus last year because 90% of the employees and retirees have Cadillac family coverage worth well over $20,000 a year.
Glad you think stealing food from the tables of Ridgewood taxpayers is a joke 8:51pm… Free Viagra pills in your prescription coverage subsidized by taxpayers? Are you serious?
Put them all on healthcare exchanges, that’ll save the Village millions
So the actuarial value for the ACA definition of platinum level coverage is 90%, but the value for the plans most public sector workers in NJ select is above that, i.e. NJ Direct 15 plan’s actuarial value is 96.4%, 1525 plan’s value is 94.6% and 2030 plan’s value is 93.9%. That means the Village and BoE will have to pay a 40% excise tax from 2018 on any plan above the ACA Platinum Level actuarial value, i.e. all of the above. Taxpayers will bear this cost, not municipal and BoE employees. Sounds like current employees will get downgraded to Bronze Level coverage so that retirees can keep their Platinum Level coverage, wonder how that’s going down in union meetings?