Public Worker Health Benefits Up For An Overhaul Nj Spotlight News

Murphy wants policy changes to manage costs, prevent ‘death spiral’ John Reitmeyer, Budget/Finance Writer | November 24, 2025 | Health Care, Politics In the final lame duck legislative session of his two terms in office, Gov. Phil Murphy wants lawmakers to pass an ambitious plan to rewrite state policies governing health benefits offered to many government workers in New Jersey. Murphy’s plan — unveiled during a speech delivered at the state League of Municipalities conference in Atlantic City last week — would revise health plans for thousands of county and local government workers whose... The plan also calls for reforming the governance structure of the local section of the benefits program itself, as well as requiring the government employers that join the program to remain in it for...

Gov. Phil Murphy wants lawmakers to pass an ambitious plan to rewrite state policies governing health benefits offered to many government workers. In the final lame duck legislative session of his two terms in office, Gov. Phil Murphy wants lawmakers to pass an ambitious plan to rewrite state policies governing health benefits offered to many government workers in New Jersey. Murphy’s plan — unveiled during a speech delivered at the November state League of Municipalities conference in Atlantic City — would revise health plans for thousands of county and local government workers whose employers... Have something to say?

We welcome letters to the editor. Please email your letter, including your name, and the town where you live, to probinson@newjerseyhills.com Want to support local journalism? We're owned by the non-profit Corporation for New Jersey Local Media, which exists to expand the future of local media. To learn more, or to contribute to sustaining and growing quality local journalism, click here! While delivering his final keynote address today at the New Jersey League of Municipalities Annual Conference, Gov.

Phil Murphy proposed a rescue and overhaul of the beleaguered State Health Benefits Program for Local Government Employees (SHBP-LG), which would include providing $260 million in near-term relief to keep the program solvent. SHBP-LG is a state-administered health insurance plan that covers employees of participating local government entities, such as cities, counties and municipalities. The governor noted that as healthcare costs continue to increase – with premiums having gone up by roughly 60% – an increasing number of employers are withdrawing from the program. This has created what actuaries have dubbed a “death spiral.” Murphy said that without reform, tens of thousands of people would be impacted and potentially lose healthcare. Home > Legal News > N.J.’s Public Worker Health Plan Is Broke — and Murphy’s $260M Bailout Could Trigger the Biggest Benefits Fight in a Decade

New Jersey’s health insurance program for nearly 150,000 local government workers is on the brink of financial collapse — and Gov. Phil Murphy says only a $260 million taxpayer-funded bailout can stop it. But his plan comes with a bombshell condition: workers will pay sharply higher premiums, higher deductibles, and lose nearly all of their plan options. Union leaders are calling it an ambush. Economists are calling it a market failure. And lawmakers are now staring down the largest benefits showdown since the Christie-era pension wars.

Murphy’s message to public employees was blunt: the State Health Benefits Program (SHBP) is broke, bleeding members, and will implode next year without sweeping structural changes. Unions had a different message: “This proposal is a joke.” Premiums in the SHBP for local workers have surged 59% in three years, causing major counties and towns to flee to private carriers. That exodus left behind a smaller, sicker pool — driving costs even higher. Public employees in New Jersey will pay as much as 36.5% more in health premiums next year, in what is the clearest sign yet of the peril facing the insurance programs for hundreds of... AON, a health insurance consultant, and officials in Gov.

Phil Murphy’s administration announced on Wednesday that premiums in the State Health Benefits Program serving county and local workers will rise 36.5%. State workers will see a 21% increase and members of School Employees’ Health Benefits Program 29.7%. This would be the fourth consecutive rate hike borne by public workers and the most expensive yet. Over the last five years, premiums have risen 115% for people in the local government portion of the State Health Benefits Plan, 73.9% for members of School Employees’ Health Benefits Commission, and 67% for... AON, a consultant hired by the Murphy administration, announced the recommended increases during meetings with the plans’ representatives in Trenton Wednesday. The committees governing all three plans will have to vote whether to adopt the suggested increases, but there aren’t obvious alternatives to head off the spike in premiums for 2026.

Wednesday’s votes mark the latest attempt to shore up New Jersey’s beleaguered public worker health plans, which have faced years of escalating premiums. (Dana DiFilippo | New Jersey Monitor) A state committee approved a series of changes to the State Health Benefits Program on Wednesday that will raise some member costs in a bid to reduce New Jersey’s spending on employee benefits by... The resolutions approved at the State Health Benefit Program’s Wednesday plan design committee meeting will raise copays, deductibles, and out-of-pocket maximums, particularly for out-of-network services. Other changes will increase members’ share of costs for prescription drugs and impose a 50% coinsurance rate on certain procedures — like endoscopies, knee replacements, and colonoscopies, among some others — done by out-of-network... Wednesday’s votes mark the latest attempt to shore up New Jersey’s beleaguered public worker health plans, which have faced years of escalating premiums that threaten a full collapse of some parts of the state...

In his final keynote address at the New Jersey League of Municipalities Annual Conference, Governor Murphy proposed a set of legislative solutions to prevent the impending collapse of the State Health Benefits Program for... Absent reform, the program is caught in a vicious cycle of rising costs (higher premiums) and declining participation (employer withdrawals) known by actuaries as a “death spiral.” The Governor is calling for significant legislative... “As health care costs have skyrocketed over the past few years, premiums have gone up by roughly 60%. And more and more employers are withdrawing from the program, which has created a ‘death spiral.’ Unless we take sweeping action now to shore up this program, there are tens of thousands of New... We cannot allow that to happen.”“Our Administration is willing to provide a quarter billion dollars over the short-term to keep the SHBP for Local Government solvent in exchange for smart structural and governance reforms... “Achieving this goal will require hard decisions.

But that is what good government is all about: making reasonable reforms to advance the public good.” The Governor’s proposed legislative solutions includes near-term relief and necessary structural reforms to plan design, governance, and... Governor Phil Murphy issued a writ of election to fill the vacancy in the U.S. House of Representatives for New Jersey’s 11th Congressional District created by the resignation of Representative Mikie Sherrill, Governor-elect of New Jersey, who resigned from office effective 11:59 p.m. on Thursday, November 20, 2025.The Governor’s writ directs that a special primary election will be held on February 5, 2026 and that a special general election be held on April 16, 2026. There will be six days of in-person early voting for the special primary election, spanning January 29, 2026 through February 3, 2026, and nine days of in-person early voting for the special general election,... 500 valid signatures are required for primary candidates.Direct nominations by petition for independent candidates for the special general election shall be filed no later than the date of the special primary election.

Independent candidates need 250 valid signatures to appear on the general election ballot. Governor Phil Murphy announced $150 million in Fiscal Year 2026 Municipal Aid grants, with 537 cities and towns across the state receiving funds to advance road, bridge, safety, and quality-of-life improvements, demonstrating the Department... Project applications were evaluated and rated on their merits by NJDOT staff and reviewed by an independent panel of New Jersey municipal engineers. Every municipality that applied for funding, all 537 municipalities, received a grant, totaling $150 million.“Having a safe and efficient transportation system throughout the state means investing in local roads and bridges, as well as... “Municipal Aid provides the funds for infrastructure projects in our towns and cities that significantly improve the quality of life for New Jersey residents.”“Once again, NJDOT was able to award funding to every community... “Governor Murphy’s ongoing commitment to improving New Jersey’s infrastructure is making New Jersey’s roads and bridges safer for all users whether you are driving, walking, or cycling.”

Working closely with leading health systems and community partners across the state, the New Jersey Department of Health has launched a coordinated effort to enhance availability and access to COVID-19 and flu vaccines for... “By leveraging our partnerships with the state’s leading health systems and launching regional COVID-19 and flu vaccine clinics, we are streamlining access to vaccinations and ensuring families have the tools necessary to protect against... “By partnering with leading health systems in all regions of the state, we are making sure that families have direct, convenient, and reliable access to vaccines close to home.” NJ TRANSIT is adding additional service this Thanksgiving weekend to help take the stress out of travel as the Garden State embarks upon the holiday season. No matter what your Thanksgiving plans are, NJ TRANSIT can help get you and your family there with kids riding free the entire long weekend!The Wednesday before Thanksgiving has historically been the busiest day... To accommodate increased holiday travel and provide additional capacity for customers traveling to Newark Liberty International Airport, as well as those leaving work early to begin the long holiday weekend, NJ TRANSIT will once...

Additionally – throughout the Thanksgiving weekend and end-of-year holiday season – NJ TRANSIT’s Family SuperSaver Fare, which allows up to two children 11 and younger to travel free with each fare-paying adult, will be... Wednesday, November 26 until 2 a.m. Monday, January 5. On Thanksgiving Day, November 27, NJ TRANSIT will add extra trains and buses to the schedule in the morning and early afternoon hours to accommodate customers traveling to/from the Macy’s Thanksgiving Day Parade in... Then, on Friday November 28, traditionally the busiest shopping day of the year, bus service will be offered to shopping centers throughout New Jersey. Rail service will operate on a weekend/major holiday schedule with additional service for those working this day.

New Jersey’s commitment to affordability, a central theme in its recently passed state budget, is extending its focus to a crucial area: the cost of public worker health benefits. Assemblywoman Verlina Reynolds-Jackson recently voiced strong support for Assembly Speaker Craig J. Coughlin’s decision to hold hearings this month, delving into potential savings within these benefit plans. This move comes on the heels of the state’s latest budget, which, while prioritizing affordability, has also seen New Jersey’s budget surplus grow to an impressive $6.7 billion – a full $700 million more... This substantial surplus has opened up new possibilities for addressing key financial pressures, and the cost of healthcare for the state’s dedicated public workforce is clearly at the forefront. Assemblywoman Reynolds-Jackson highlighted the importance of these upcoming hearings, stating, “We need to ensure that the hard-working men and women who dedicate their careers to public service don’t pay more than they need to...

The rising cost of healthcare is a national concern, and New Jersey’s public worker health benefit plans are not immune. Discussions around these costs often involve balancing comprehensive coverage with fiscal responsibility. The aim of these hearings is to conduct a thorough examination, identifying opportunities to achieve additional savings that could ultimately help offset some of the premium costs associated with state health benefit plans. While the specifics of the hearings are yet to be fully outlined, the intent is clear: to meticulously review the current structure and identify areas where greater efficiency and cost-effectiveness can be achieved. This could involve exploring various aspects of the plans, from administrative overhead to the efficacy of different coverage options.

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