Where have you heard this before? Why can’t NJ and other states solve this problem? Two simple reasons; 1⃣ politicians, most Democratic, are in bed with public employee unions and 2⃣ the two sides don’t understand the problem. Look at the comments I placed in bold. “Nothing to do with the exorbitant prices we are paying?” New Jersey and virtually all large employers are self-funded. The prices (premiums) they pay are a reflection of the claims incurred by and paid on behalf of employees and their families. What is paid is the direct result of utilization of health care.
The generous benefits remove concern for costs from patients. I sat on a NJ health benefits commission at one time when it refused to raise a prescription co-pay $1.00 and another when it set premiums at levels it knew in advance were insufficient to cover plan costs for the following twelve months. The problem in NJ and elsewhere is simply out of control and unfair to taxpayers.
Public employee benefits at center of budget storm
By KENNY WALTER
Staff Writer
Gov. Chris Christie has been touting the need for new reforms to the pension and health care programs for public employees during his town hall meetings this summer. GREG KENNELTY/STAFF
A ranking Republican legislator predicts that skyrocketing health benefit costs for public employees in New Jersey will cripple the state’s budget in less than six years.
State Assemblyman Declan O’Scanlon (R-Monmouth), who serves as the GOP budget officer in the Assembly, said last week that he is hoping to unveil a package of reforms before the end of the year in an effort to stave off the growing cost of health benefits.
“The state of New Jersey’s fiscal health is precarious. You can’t argue with the math,” he said. “The commitments that some wellmeaning — but irresponsible, nonetheless — previous New Jersey officials made will crush the taxpayers of New Jersey.
“If we don’t have [reform], this all explodes. And somewhere between three and six years from now, this is going to come to a head.”
O’Scanlon’s comments came a week after Gov. Chris Christie said during a town hall meeting in Long Branch that the state will pay more in benefits for retired employees than for active employees over the next year.
Though he did not present a specific plan, O’Scanlon said the reforms must result in employees contributing more for health care.
“[Public benefits] are extremely generous. The overwhelming majority of the people in the private sector don’t get health benefits from their employers anywhere near what public sector employees get,” he said. “That has got to change.”
However, the state should focus more on driving down premium costs rather than increasing contributions, according to Kevin Lyons, a spokesman for the New Jersey State Patrolmen’s Benevolent Association.
“Almost every plan the state has come up with to save costs is nothing more than cost shifting,” he said. “That has nothing to do with the exorbitant prices we are paying.” Lyons said Christie’s 2011 pension reforms led to a rush of retirements that are now in the system.
via Public employee benefits at center of budget storm | eb.gmnews.com | East Brunswick Sentinel.
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