title
Resolution of the Mayor and Council of Princeton Urging State Leaders to Implement Fair and Equitable Reforms to Mitigate the Unsustainable Increases in Health Benefit Premiums for Public Sector Employees
end
body
WHEREAS, the State Health Benefits Program (SHBP), governed by N.J.S.A. 52:14-17.25 et seq., offers medical, prescription drug, and dental coverage to qualified State and participating local government public employees, retirees, and eligible dependents; and
WHEREAS, all SHBP plans are self-funded, meaning that the money paid out for benefits comes directly from an SHBP fund supplied by the State, participating local employers, and member premiums; and
WHEREAS, the rate increase for the 2026 Local Government Employer Group is 36.25% and does not include fully funding the loan to the SHBP Local Government Group under c. 86 or funding to bring the Claims Stabilization Reserve to the required two-month balance; and
WHEREAS, since the end of 2020 nearly 200 local government employers have exited the SHBP, representing a nearly 30% decline, largely leaving only local governments with the highest risk in the plan; and
WHEREAS, subsequently, during budget testimony State Treasurer Binder noted regarding the SHBP costs, while Treasury does not have the final numbers, "based on the plan actuary's midyear reports and SHBP Local Government fund levels, it is possible that rate increases could be as high as the rate increases, we experienced last year;" and
WHEREAS, such proposed exorbitant rate increases will fall upon the local property taxpayer along with the local public employees at a time where there is record inflation; and
WHEREAS, despite innovative cost containment measures taken by municipalities to make available affordable and quality healthcare for valued employees and their families, public sector health benefit plans are far too costly; and,
WHEREAS, time is of the essence for State leaders to enact long-term structural refo...
Click here for full text