Posted on

Steep Health Care Premium Increases Loom for NJ Public Workers in 2026, Treasury Report Warns

istockphoto 589422714 612x612 1

the staff of the Ridgewood blog

TRENTON, NJ — Hundreds of thousands of New Jersey public employees, including teachers, police officers, and local government workers, could face major health care premium hikes in 2026, according to new recommendations presented by the state Treasury Department on July 9.

The proposed premium increases vary by plan and would significantly impact employees across various sectors if adopted by the State Health Benefits Commission and School Employees’ Health Benefits Commission:

  • 🏛 Local Government Plan: +36.5%

  • 🎓 School Employees’ Health Benefits Program (SEHBP): +29.7%

  • 🏢 State Health Benefits Program (SHBP): +21%

📈 Premiums Have Been Climbing for Years

These proposed increases come after years of growing health care costs in the state’s public sector. Since 2019, average family premiums in the U.S. have risen 24%, and since 2014, the increase has hit 52%, according to a 2024 Kaiser Family Foundation report.

In New Jersey alone:

  • Local government worker premiums have soared 115% over the past 5 years

  • School employee premiums increased 73.9%

  • State employee premiums rose 67.3%

Due to these skyrocketing costs, about 45% of New Jersey’s 1,200 local public entities have already opted out of the state plan in favor of alternative insurance providers.

💼 Union Leaders Speak Out Against Increases

Unions representing public workers responded with outrage at the July 9 commission meeting, where many members protested the proposals.

“State officials continue to make public employees, especially in local government, collateral damage,” said Billy Gallagher of the CWA union, which represents 40,000 workers.

Peter Andreyev, President of the New Jersey State PBA, criticized the health care system’s structure:

“This is the result of an unholy alliance between the carriers and the hospital networks. Not only should we be angry — the people of New Jersey should be infuriated.”

NJEA President Sean Spiller, who ran in the 2025 Democratic gubernatorial primary and spent $45 million on his campaign, voiced frustration over the state’s refusal to explore cost-saving reforms.

“Easy, obvious solutions like reverse auctions for prescription drugs are ignored,” Spiller said. “Lack of affordable health care hurts everyone in New Jersey.”

🧾 What’s Next?

The AON actuary group submitted the proposed increases to the state commissions. Both commissions must formally adopt the recommendations before they go into effect. Public employee unions are expected to continue pressuring state leaders to pursue alternatives.

💬 The Bottom Line

If the recommendations move forward, thousands of public employees across New Jersey will see their health care premiums dramatically increase in 2026. Union leaders and public workers argue that unless the state takes meaningful action to address ballooning costs, New Jersey risks losing essential workers — and burdening already struggling households.

Tell your story #TheRidgewoodblog , #Indpendentnews, #information, #advertise, #guestpost, #affiliatemarketing,#NorthJersey, #NJ , #News, #localnews, #bergencounty, #sponsoredpost, #SponsoredContent, #contentplacement , #linkplacement, Email: Onlyonesmallvoice@gmail.com

4 thoughts on “Steep Health Care Premium Increases Loom for NJ Public Workers in 2026, Treasury Report Warns

  1. What do they pay per month? Percentages mean little if you dont know what tbe cost is. For example if they paid $100 per month but now pay $150, that’s a 50% increase, but way short of reality. So what do they pay per month ?

  2. Make the employees contribute more, or ALL of the increase. By having skin in the game, they can help minimize the costs associated with these plans. I’m tired of overpaying them and their salaries, benefits, and funding their retirement.

    1
    1
    1. Then pick your own cotton.

  3. Those 45% of the plans that have gone elsewhere probably have a healthier group, leaving the state plans with the sickest members. The plans are in a death spiral.

Leave a Reply

Your email address will not be published. Required fields are marked *