Health Benefits Reform on Horizon?

Two Republican lawmakers are sponsoring legislation to give school boards in the State Health Benefits Program the flexibility to negotiate aspects of coverage with their employees – a reform long-sought by NJSBA.

Sen. Bill Gormley, R-Atlantic, announced the plan after hearing testimony from employee organizations, NJSBA and other groups at last Thursday’s meeting of the Joint Legislative Task Force on Public Employee Benefits Reform. Assemblyman Kevin O’Toole, R-Passaic, will sponsor the Assembly version of the bill.

In September, Sen. Raymond Lesniak, D-Union, introduced legislation, S-2163, that would permit school districts and other local public employers in the state plan to negotiate benefits and cost sharing with employees. The bill, which also reflects NJSBA-sought reforms, is in the Senate State Government Committee.

Controlling Costs NJSBA lobbyist Barbara M. Horl testified before the employee benefits reform committee on Oct. 12, asking the lawmakers to give school boards in the state plan the ability to bargain aspects of health benefits.

Almost 40 percent of New Jersey’s school districts use the state plan. However, state regulations preclude them from negotiating deductibles and co-payments, employee contributions, placement of new employees in less-costly managed-care systems, and other areas of coverage.

“Things have changed over the years,” Horl said. “In 1991, 457 school districts were part of the SHBP, representing 76 percent of all New Jersey school districts. Because of huge increases in premiums since the mid-1990s and the plan’s rigid structure, 218 school districts have left the SHBP and gone with private health insurers.

“Districts have saved millions of dollars by making this move,” she said, giving the example of the Clifton school district, which saved $1.5 million the year it left the plan.

Last December, another panel – the governor’s Benefits Review Task Force – issued a report that backed the changes to the State Health Benefits Program advocated by NJSBA. The task force report is a major reference point for the current joint committee.

Coming Up The Joint Legislative Committee on Employee Benefits Reform is one of four panels addressing property tax reform initiatives. The committees are expected to recommend legislation to the full Legislature by mid-November.

School board members and the public will have an opportunity to testify before the joint committees during the next two weeks. Upcoming meetings include:

• Public Employee Benefits Reform: 4 p.m., Wednesday, Oct. 18 at Gloucester County College, College Center, 1400 Tanyard Road, Sewell, N.J. Directions: http://www.gccnj.edu. The committee will hear testimony from the public on pensions and health benefits for public employees.
  
  
• Constitutional Reform and Citizens Property Tax Constitutional Convention: 10 a.m., Thursday, Oct. 19 in Committee Room 11, 4th Floor, Statehouse Annex.
  
  The committee is scheduled to hear a presentation by the non-partisan Office of Legislative Services. It also invited speakers to address the possibility of the state convening a Constitutional Convention to address property tax reform.
  
  
• Public School Funding Reform: 1 p.m., Tuesday, Oct. 24 also in Committee Room 11 in the Statehouse Annex. Agenda to be announced.
  
  
• Government Consolidation and Shared Services: 10 a.m., Wednesday, Oct. 25, same location. Agenda to be announced.