'Incredulous': State Health Plan Rate Hikes!

New Jersey State Assemblywoman Victoria Flynn and Assemblyman Gerry Scharfenberger (Monmouth – Rs) are awaiting answers from the New Jersey State Treasurer and the Department of Banking & Insurance Commissioner regarding the startling reports that have surfaced indicating that State Health Benefit Plan recipients could see drastic rises in their premium costs soon.

The impact of these costly premium increases would have rippling effects on state and local government employees, retirees, teachers, and police (etc.). Additionally, property taxpayers could bear the brunt of these rate hikes as municipalities attempt to compensate for contractual obligations when crafting their budgets.

 

Further complicating matters is that it appears the legal process to approve these rate hikes has not been followed which has only added to confusion and prompted the letter from the Assemblymembers:

 

“With every conceivable cost rising for families throughout the State due to out-of-control inflation, it is unconscionable that public employees should now be confronted with the increase costs of their health and prescription coverages due to actions being made behind closed doors. There is something deeply concerning happening here that will make NJ less affordable for public employees that serve our State, and, quite frankly, we will not allow these rate hikes to take effect without our questions being addressed,” stated Assemblywoman Flynn. “There has been no justifiable evidence given to the public nor the Legislature for these increases and we are demanding that these departments provide us with information immediately. The lack of governmental transparency, adherence to protocols, and accountability is a direct insult to every state employee, police officer, teacher, and retiree in the State Health Benefits Plan.”

 

“It is incredulous that this is happening and unbelievable that there has not been a single shred of communication from the departments detailing why costs are increasing. To make matters worse, there has been no clarity as to what extent rate hikes may increase. Some information suggests that it could be anywhere between 15-24% and those figures do not include the additional costs to prescription drug plans,” said Assemblyman Scharfenberger. “We want answers as well as qualifying information that demonstrates that there is actually a need for this to occur. Otherwise, Trenton is placing SHBP members and local governments in a horrific situation that will undoubtedly lead to financial disaster for every taxpayer when they see just how much these increases impact property taxes next year.”