HomeExclusiveNj State Health Benefits...

Nj State Health Benefits For Retirees

Heres What Gov Murphy Says About Nj Public Worker Health Benefit Rate Increases

Health Benefits in Retirement for members of PERS and TPAF

A proposal to increase health insurance premiums for public workers in New Jersey is being driven by a post-pandemic surge in demand for health care services, Gov. Phil Murphy said.

Thousands of state and local government workers and educators could face a rate increase of as much as 24% on health benefits in the coming year, and early retirees could see their rates jump by more than 15%, according to a proposal that was leaked last week to government lobbyists.

Weve done more to make healthcare more accessible and affordable than any state in America since weve been in office, Murphy told reporters during an unrelated press conference in Asbury Park on Monday. This is yet another reminder that we have more work to do.

When asked by a reporter, Murphy said the problem is not unique to New Jersey, adding that this is a phenomenon around the country, if not around the world.

The state health benefits commissions were set to approve the rate increase on Monday, but that vote was postponed to provide more time to address questions and concerns, according to New Jersey Treasury spokeswoman Jennifer Sciortino.

Republican leadership in the state Legislature have called for the creation of a special legislative committee to investigate failures by the Murphy administration that they say led to the premium increases.

I dont blame people for having sticker shock. I have it as well, the governor said. Weve done a ton of stuff, but we still need to do more.

Pensions & Health Benefits

NJEA believes that the mainstay of a secure retirement is the defined benefit pension plan. In New Jersey, teachers and educational support professionals contribute a percentage of their salary and receive credit for the time they serve public school students in a pension plan that provides a guaranteed income in retirement. This is deferred compensation that members earn as part of their compensation package.

Providing quality health benefits for public school employees does not just benefit the employee and their families they are also critical to protecting students health.

Post-retirement medical benefits are another element of an employees deferred compensation.

On July 1, 2020, Governor Murphy signed NJEAs long-sought Ch. 78 relief plan into law. P.L. 2020, ch. 44, will lower the cost of health insurance for school employees while also lowering costs for school districts.

Disclaimer For Third Party Web Sites

Please be aware you have clicked on a link to a visit another site operated by a third party. Horizon Blue Cross Blue Shield provides such links for your convenience and reference only. Horizon Blue Cross Blue Shield, and its subsidiary companies do not control these sites, and are not responsible for their content or the products and services offered therein.

Please be aware when you travel from the Horizon Blue Cross Blue Shield site to another site, whether through links we provide or otherwise, you will be subject to the privacy policies of those sites. Horizon Blue Cross Blue Shield cautions you to use good judgment and to determine the privacy policy of such sites before you provide any personal information.

Horizon Blue Cross Blue Shield of New Jersey is an independent licensee of the Blue Cross Blue Shield Association.

Information in Other Languages

Recommended Reading: How To Stop Social Security Benefits After Death

What Will Happen Next

What happens next remains in question. A benefits committee meeting initially set for Friday has since been cancelled. In Essex County, DiVincenzo said he is working with budget staff to sort through the various increases they face next year a 10% hike in pension expenses, a 3% salary increase and budget for gas, fuel and other rising costs. If the health plan comes in at $20 million more than expected, he said, the only option is raising taxes or laying off people.

Cerra, with the League of Municipalities, said he worried how this all trickles down to New Jersey taxpayers. You kind of have a perfect storm here, he said.

Pandemic Inflation Are Factors

NJ Division of Pensions &  Benefits

Treasury officials said last week that the rate increase proposed for 2023 reflects the growing cost of care, although it may not continue at this level in the years to come. The expense is heavily influenced by the COVID-19 pandemic, they said, which increased the need for costly treatment and led to pent-up demand for routine care, which people are now flocking to receive. Inflation is also a factor.

While there is significant volatility in health care trends, the rate increases for the State plans are in line with rate increases that our consultants other clients are experiencing and are also being reported nationwide, said Treasury spokeswoman Jennifer Sciortino, noting that the process is working the same as in past years.

Assemblyman John DiMaio: Its time we peel back the onion to find out exactly how we got to where we are with the health care premiums so we can hold those responsible accountable.

We believe that these circumstances are an anomaly, rather than the norm, and we believe that it is more likely than not that utilization and costs will normalize, she said.

Recommended Reading: Taxes On Social Security Benefits Calculator

Officials Blame Inflation Post

By: Nikita Biryukovâ August 12, 2022 7:04 am

Proposed double-digit increases in health insurance premiums for public workers have state and local officials fearful of the impact on the workers and taxpayers.

Surging inflation and a sharp rise in the use of health services are behind a proposed double-digit increase in health insurance premiums for public workers that have state and local officials fearful of the impact on the workers and taxpayers, officials said Thursday.

Speaking to the State Health Benefits Plan Design Committee, which oversees public worker health plans, officials from Aon Hewitt the health plans actuary said a rebound in health care visits in 2021 is the main driver of the proposed increases. Visits doubled or, in some cases, tripled expectations set in 2020, they said.

Becky Searles, a senior vice president at Aon Hewitt, said actuaries had predicted claims would rise by no more than 10% as the viruss impact on health visits receded in 2021.

Were seeing much higher bounce-backs, some services up 20 to 30% over 2020, Searles said.

The pandemic appears to have driven many of the utilization trends that underpin the actuarial recommendations. Health care visits plummeted in 2020 amid fears of COVID-19, then rebounded in 2021. But inflation is also a factor: Actuaries said premiums for public workers would need to increase roughly an additional 7.6% to account for rising prices.

A rush of reactions


Aetna Premier Care Network Plus Plan

  • Administered by Aetna
  • New Aetna ID card Only,* Prescription and Dental ID Cards remain the same
  • Co-pays for visits and hospital stays
  • Use out-of-network provider in emergency only
  • $15 weekly co-premium for spouse*
  • $10 weekly co-premium for children, no matter how many you are covering*
  • Two open-enrollment periods January and July*

*Updated plan change, effective September 1, 2022.

To confirm your existing provider is still in-network or to find a new provider, please visit www.aetnadocfind.com/2022-apcn-plus-oaas and follow these steps:

  • Enter your ZIP code and click on Start Your Search
  • Enter your home location under Continue as a Guest and click on Search
  • Search for your existing provider by name or search for a new provider by category

If you are currently receiving care, please complete and submit an Aetna Transition Coverage Request Form.

Recommended Reading: Tax Benefits Of Investing In Real Estate

Also Check: Life Care Centers Of America Employee Benefits

When Will We Know

While decisions made by the respective plan-design committees can impact premium rates because they are empowered to set things like co-pays and deductibles, the committees do not have the legal authority to set or approve the premium rates. Instead, that responsibility is legally granted to members of the State Health Benefits Commission and the School Employees Health Benefits Commission. Those two panels are comprised of both government officials and worker-union representatives. Its not clear when they will be meeting to consider final approval of the 2023 premium rates.

We stand ready and willing to continue to work with labor representatives and the Legislature to answer their questions and identify ways to lower the costs of health benefits for public employers and plan members. Jennifer Sciortino, Department of Treasury

For its part, the Murphy administration has expressed concern about the proposed rate increases, but it has no legal authority to act unilaterally to blunt the cost.

A fact sheet prepared by the Department of Treasury indicated the states recently enacted fiscal year 2023 budget included enough resources to absorb the increased rates, but also warned increased appropriations for worker health care may be required for fiscal year 2024, which begins July 1, 2023.

Also Check: Taxes On Social Security Benefits 2021

School Employees Health Benefit Commission Approves 2023 Rates:

NJ PFRS Retired Health Benefits

For those districts who have their Health Benefit Coverage through the School Employees Health Benefit Plan , you will see premiums rise 15.1% beginning January 1, 2023.

The increase is 15.6% for Medical and 10.8% for RX for a combined increase of 15.1%.

For those members enrolled in NJDirect 10 or 15, your cost share will increase based on your contracted percentage of the premium that has been agreed to. Since your Cost share percentage is on the Premium , your cost share should increase by 15.1% based on what you were paying in 2022.

For those members in the New Jersey Educators Health Plan or Garden State Health Plan , your cost share should remain flat since under Ch44 you are paying a percentage of your salary

For Retirees, Early Retirees who are enrolled in the NJEHP, if you are cost sharing, your cost share under Ch 44 should not change since it is a percentage of your pension.

The link to the Complete Rate Renewal report is below for those who want to gain a more in-depth understanding on how the new rates were determined.

As always, if you have questions on the new rates, please contact us.

Recommended Reading: What Are My Ss Benefits When I Retire

County Sponsored Health Benefits

Employees who accumulate 25 years of creditable service with the County of Burlington and who meet the criteria to retire under PERS or PFRS are eligible for County Sponsored medical and prescription benefits coverage. Dependent coverage is available upon payment of quarterly premiums. Dental coverage is available according to COBRA guidelines

  • Burlington County

  • Hundreds Of Thousands Of Workers Retirees

    While the specific impacts vary, hundreds of thousands of workers and retirees from state government, municipalities, county governments and school boards are among those facing the increases.

    A bounce back in the number of people using services was projected for 2021. But the actual use of services turned out to be two to three times what was expected, according to a consultant.

    Meanwhile, the proposed new rates which have yet to get final approval are also being closely watched by government employers who, by law, cover a significant share of the annual cost of providing public workers with health insurance and pension benefits in New Jersey.

    It remains to be seen if the increased costs will get passed along at least to some degree to taxpayers, including property owners, who already pay some of the highest levies in the country.

    According to the reports outlined during last weeks meetings, there was a significant deferral of care during the first year of the pandemic.

    A bounce back in the number of people using services was projected for 2021. But the actual use of services turned out to be two to three times what was expected, according to consultant Aons presentations.

    In addition to 2021 utilization playing a key role, the rates are also being affected by rising inflation, according to the consultant. The latest data from the federal Bureau of Labor Statistics shows overall U.S. inflation held steady in July, but was up by 8.5% year-over-year.

    Recommended Reading: Elevator Division Retirement Benefit Plan

    Nj Public Workers Face Big Increase In Health Insurance Rates In Coming Year

    Hundreds of thousands of public workers, early retireesm and school employees in New Jersey are facing potential rate increases of as much as 24% for health benefits under proposals being considered by the State Health Benefits Commission.

    Rate increases being considered include a 24% increase for medical and a 3.7% increase for pharmacy benefits for active public workers, as well as a 15.6% increase in medical and a 26.1% increase in pharmacy benefits for public workers who retired before the age of 65, according to an email sent to county administrators from New Jersey Association of Counties Executive Director John Donnadio.

    Donnadio said in the email that the figures, which havent been made public, were shared by an insurance and benefits broker.

    StateTreasury spokeswoman Jennifer Sciortino acknowledged rate increases were being considered and added that rates for active members and early retirees would likely increase between 12-20% across the various plans for the upcoming year.

    A vote to approve the rate increases was scheduled for Monday, but the state health benefits board and the Division of Pension and Benefits postponed the vote after acknowledging during a public meeting on July 13 that more time would be needed to address questions and concerns, Sciortino said.

    Horizon administers health care plans for state and local government employees and retirees in New Jersey.

    Breaking Down The Increases

    State of NJ

    Local and county officials want to know what Murphy is doing about the 2023 cost increase under discussion. John Donnadio, executive director of the county association, said the state health plan would rise as much as 26.1% next year for pharmacy benefits for educators taking early retirement. Government workers in early retirement would actually see their prescription benefit cost decline 5.7%. Medical benefits for early retirees would increase 13.6% for educators and 15.6% for government employees.

    For the active employees in this plan, medical plan premiums would rise 24% for the government group and 15.6% for educators, according to Donnadio. Their prescription benefits would rise 3.7% and 7.8%, respectively. Information on traditional retirees was not available changes to Medicare plans provided through the system were negligible.

    Oroho and others now wonder if this proposed increase is connected to Horizons contract. They point to a recent Bloomberg report that some state officials were displeased with the insurance companys service and sought to recoup $34 million for failing to deliver on certain savings until Murphy intervened. Horizons contract with the state worth $136 million annually expires at the end of December, although the state can renew it for one or two years.

    Don’t Miss: What Employee Benefits Are Required By Law

    Most Popular

    More from Author

    Read Now

    Social Security Benefits Sign Up

    Next Steps For Apply For Ssdi Or Ssi Benefits How To Sign Up For My Social Security Account Online Evidence required by DDS for case documentation ...

    How To Sign Up For Medicare Benefits

    Quality Of Beneficiary Services How To Apply For Medicare Online - Step By Step A 2001 study by the Government Accountability Office evaluated the quality of responses given by...

    When Does Social Security Recalculate Benefits

    How Much Can I Earn And Still Get Benefits Will Your Social Security Benefit Be Recalculated? When you begin receiving Social Security retirement benefits, you are considered retired for...

    Tax Benefits Of Donor Advised Funds

    Capital Gains Elimination Or Reduction Demystifying Donor Advised Funds - WHYY Events (2022) You can also fund your donor-advised fund with direct donations of stock or other appreciated assetss....

    Early Retirement Social Security Benefits

    Bridge To Medicare At Age 65 Want to Retire Early? Don't Make this BIG Social Security Mistake Remember that while you are eligible for reduced Social Security benefits at...

    Veteran Owned Business Tax Benefits

    What If I Hired A Military Veteran Successes using VA's Office of Small & Disadvantaged Business Utilization (OSDBU) as a Resource We strongly believe that veterans are a valuable...

    How To File For Social Security Benefits

    Factors That Affect Social Security Benefits How to apply for Social Security Number || Application Process || Documents Required #ssn #usa The math seems to say that everyone should...

    Benefits Of Social Media For Teens

    My Child Has Been On Social Media For A While Now Is It Too Late To Get Started How social media is affecting teens It is never too late...

    What Is The Age For Full Social Security Benefits

    How Much Can I Earn If I Work After My Full Retirement Age What is the Full Retirement Age for Social Security? If you continue to work after reaching...

    Ssa Gov Benefits Medicare Prescription Help

    See If You Qualify For Extra Help Medicare & You: Ways to Save Money Some people automatically qualify for the Extra Help program and dont need to apply. Medicare...

    Procter And Gamble Employee Benefits

    P& g Rolls Out Medical And Workplace Benefits For Partners Of Lgbtq+ Employees BVTV: Procter & Gambles inflation benefits Procter & Gamble today announced that...

    Apply Retirement Social Security Benefits

    Are Social Security Checks Retroactive How to Apply for Social Security Benefits You may be able to collect Social Security Benefits up to 6 months prior. However, if you...