Corzine Approves New Teacher Health Plan

Corzine Approves New Teacher Health Plan

Gov. Jon S. Corzine recently signed a bill into law that gives public school employees their own new state-run health benefits program, beginning July 1, 2008. The governor signed the legislation, A-5005, on June 28.

The new plan, called the School Employees’ Health Benefits Program, resulted from an agreement between the state teachers union and Corzine.

Advantages for School Districts Cost containment of benefits will be available to school boards under the new program, allowing waiver incentives, employee contribution to premiums, and different levels of coverage for various groups of employees based on their dates of hire, salary and other factors.

NJSBA will also designate a representative to a nine-member commission overseeing the new plan, marking the first time that a local school board representative will have a voice in the governance of a public employee health program.

Fast Facts

About 192 of the state’s school districts, or 33 percent, participate in the State Health Benefits Program.
Districts in the state’s existing plan will automatically move into the new system.
School employees will transition from a traditional health plan into a large-network preferred provider organization.
Districts that have opted to obtain health coverage through private carriers will not be forced into joining the new state program.
Annual employee contributions to the state retirement systems—including the Teachers Pension and Annuity Fund—will increase from 5 percent to 5.5 percent.