Bill > S3

Introduced Session

Sections 1 through 6: These sections implement Recommendations 22 and 23 of the Joint Legislative Committee on Public Employee Benefits Reform set forth in the final report dated December 1, 2006. The committee recommended that "some level of premium sharing be established for all active employees through the collective bargaining process. The committee stated "that all public employees should be required to pay some portion of the employer-provided health care insurance." In addition, the committee recommended that "all future retirees receiving employer-paid SHBP benefits pay some amount of health care premiums ... linked to a retirees ability to contribute." The bill requires, after its effective date and the expiration of any applicable binding collective negotiations agreement, that active employees of the State, local governments, and boards of education will contribute 1.5% of base salary toward the cost of health care coverage under the State Health Benefits Program (SHBP) and the School Employees Health Benefits Program (SEHBP). Employees of the State, local governments, and board of educations who become a member of a State or locally-administered retirement system on or after the bills effective date would be required to pay in retirement 1.5% of their pension benefit toward the cost of health care coverage under the SHBP and the SEHBP. For State and local government employees and retirees and for board of education employees, this amount will be in addition to any other amount that maybe required through the collective negotiations process for employees with a majority representative for collective negotiations and, for those without such a representative, through the application of the terms of a collective negotiations agreement upon them. The contribution required for new State employees in retirement will not be waived for a retiree who participates in the New Jersey Retirees Wellness Program. Section 7: This section implements Recommendation 24 of the Joint Legislative Committee on Public Employee Benefits Reform set forth in the final report dated December 1, 2006. The committee recommended "the enactment of legislation that would allow local public employers to negotiate collectively both premium sharing arrangements, as well as offering different plan coverage within the SHBP. A local employer, for example, would be permitted to negotiate SHBP coverage through a health maintenance organization only as opposed to the wide array of options currently mandated to be available." The goal is to "maximize savings and control costs for the taxpaying public." The recommendation concerning premium sharing has already been enacted into law by P.L.2007, c.62. This bill provides local governments, including local boards of education, with the ability to limit, through collective negotiations agreements with their active employees, the choice of plans offered by the SHBP or the SEHBP. Section 8: This section implements Recommendation 25 of the Joint Legislative Committee on Public Employee Benefits Reform set forth in the final report dated December 1, 2006. The committee recommended "that legislation be enacted to ensure that basic changes made in the provision of SHBP benefits to State employees, such as the amount of copayments for office visits and prescription drugs, be applicable at the same time to all individuals covered by SHBP." The committee believed that it was "important that SHBP benefits changes negotiated by the State with its employees be applicable to employees of local employers not only to reduce administrative expenses for all through conformity but also to extend to those local employers the same cost savings enjoyed by the State." The committee believed that it was "important to ensure consistency in health benefit coverage and cost for all public employees." This bill requires that changes in the provision of health care benefits through the SHBP and the SEHBP that are included in collective negotiations agreements between the State and its employees be applied to local government employees including school employees at the same time and in the same manner as to State employees. Section 9 and 10: These sections implement Recommendation 26 of the Joint Legislative Committee on Public Employee Benefits Reform set forth in the final report dated December 1, 2006. The committee recommended the "enactment of legislation to clarify that only full-time employees are eligible for SHBP coverage by defining a full-time employee as an employee who works 35 or more hours each week. This proposal should apply only to new employees enrolling in SHBP after the enactment of legislation." The committee stated that it "believes that significant savings to local public employers and their taxpayers are possible by bringing them into conformity with State practice and ensuring that only genuinely full-time employees and their dependents are eligible for the desirable and costly benefits of SHBP coverage." This bill provides that, after the bills effective date, enrollment in the State Health Benefits Program (SHBP) will be limited to a person who (1) is a full-time appointive or elective officer of the State or local government whose hours of work are fixed at 35 or more per week, a full-time employee of the State, or a full-time employee of an employer other than the State whose hours of work are fixed by the governing body at not less than 25 per week, or (2) an appointive or elective officer, an employee of the State, or an employee of an employer other than the State who has or is eligible for health benefits coverage in SHBP on that effective date and continuously thereafter. The bill similarly limits enrollment in the School Employees Health Benefits Program (SEHBP) to persons employed full-time whose hours of work are fixed by the governing body at not less than 25 per week. Section 11: This section implements Recommendation 27 of the Joint Legislative Committee on Public Employee Benefits Reform set forth in the final report dated December 1, 2006. The committee recommended "the enactment of legislation to permit waiver incentives for all local public employers." The committee recommended "that the maximum amount of the waiver be 25% of the amount saved by the employer through the employees waiver of coverage but only for employees who waive after the enactment of the legislation." The purpose is to give "employers another tool to use in their efforts to control the costs of providing health benefits, to save taxpayer dollars, and offer property tax relief." This recommendation was partly implemented by the enactment of P.L.2007, c.92 and P.L.2008, c.89. This bill implements the recommendation that the incentive be set at 25% of the amount saved by the employer and goes further to cap the amount at $5,000. This will apply to waivers filed after the bills effective date. Section 12: This section implements Recommendation 29 of the Joint Legislative Committee on Public Employee Benefits Reform set forth in the final report dated December 1, 2006. The committee recommended the "enactment of legislation to ensure that no SHBP duplicate coverage is available to an enrolled individual as an active employee, retiree or dependent." In addition, the committee recommended "that applicable regulations prohibiting multiple coverage within SHBP be codified into law to abolish any current inequities and unnecessary utilization or duplication of services and benefits, and thereby to achieve savings for public employers and the taxpayers." This bill prohibits multiple coverage in the SHBP and the SEHBP in accordance with the rules and regulations promulgated by the State Health Benefits Commission and the School Employees Health Benefits Commission.

AI Summary

Committee Categories

Alex DeCroce (R)*,  Michael Doherty (R)*,  Tom Kean (R)*,  Sheila Oliver (D)*,  Jim Whelan (D)*,  Christopher Bateman (R),  Jim Beach (D),  Jennifer Beck (R),  Anthony Bucco (R),  Barbara Buono (D),  Gerald Cardinale (R),  Andrew Ciesla (R),  Nia Gill (D),  Robert Gordon (D),  Joseph Kyrillos (R),  Raymond Lesniak (D),  Fred Madden (D),  Kevin O'Toole (R),  Steven Oroho (R),  Joe Pennacchio (R),  Teresa Ruiz (D),  Nick Scutari (D),  Bob Smith (D),  Brian Stack (D),  Stephen Sweeney (D),  Joe Vitale (D), 

Approved P.L.2010, c.2. (on 03/22/2010)