New Jersey Governor Mikie Sherrill recently announced the launch of the State Health Benefits Program (SHBP) Reform Working Group. The action fulfills a commitment made last month as part of the Administration’s agreement with 17 unions representing State employees.
The working group brings together organizations representing the State, participating unions and stakeholders with relevant healthcare and program expertise. Participants will take part in a sustained review of the structural challenges that are facing the SBHP. Recommendations that are supported by evidence will be developed to establish ways to make high-quality health benefits more affordable and sustainable.
“From Day One, I have been focused on making New Jersey more affordable, and that means tackling hard problems instead of kicking them down the road,” said Governor Sherrill. “Rising healthcare costs affect public employees and retirees, the local governments and schools that serve our communities, and taxpayers across the state. For too long, New Jersey has responded one rate cycle at a time. We are taking a different approach by bringing stakeholders together, working from shared data, and pursuing long-term changes that preserve high-quality benefits while making these programs more affordable and sustainable. I appreciate everyone’s willingness to come to the table ready to problem solve.”
The group’s work will focus on several issues, including how the State administers public employee health benefits, how provider networks are structured and paid, plan pricing, premium-contribution structures and plan and benefit design, how employers and members participate and whether the programs have the proper governance, information and operating capacity required to manage costs effectively.
The working group will be led by New Jersey’s Chief Operating Officer Kellie Doucette.
“The Sherrill Administration is committed to making government work better by bringing people together to solve tough problems, based on data, expertise, and best practices from across the country,” said Chief Operating Officer Kellie Doucette. “The challenges facing public employee health benefits demand that same approach. We look forward to working collaboratively to build a road map for systemic reform, using all of the levers available to us and focusing not just on the what but on the how; understanding that a plan for implementation is as important as the recommendations themselves. It is the only way to get the measurable results that employees, employers, and taxpayers deserve.”
As part of the group, there will also be dedicated subcommittees that are dedicated to each of the issues discussed. The subcommittees will bring participants and subject-matter experts together to conduct a more in-depth analysis, engage more stakeholders and work on building firm recommendations.
The working group consists of representatives of the State government and organizations that can be found listed below.
Labor and employee organizations
- AFSCME New Jersey Council 63
- AFT New Jersey
- Communications Workers of America District 1
- Council of New Jersey State College Locals
- IBEW Local Union 30
- IBEW Local Union 33
- IFPTE Local 195
- Local 32BJ MVI Division
- New Jersey Division of Criminal Justice PBA Local 383
- New Jersey Investigators Association, FOP Lodge 174
- New Jersey Law Enforcement Supervisors Association
- New Jersey PBA Local 105
- New Jersey State Troopers Fraternal Association
- New Jersey State Troopers Non-Commissioned Officers Association
- New Jersey State Troopers Superior Officers Association
- New Jersey Superior Officers Association
- State Law Enforcement Unit
- Health Professionals and Allied Employees
- New Jersey AFL-CIO
- New Jersey Firefighters’ Mutual Benevolent Association
- New Jersey Fraternal Order of Police
- New Jersey State Policemen’s Benevolent Association
- Professional Firefighters Association of New Jersey
- Rutgers AAUP-AFT
- Teamsters Joint Council 73
Healthcare organizations
- New Jersey Association of Health Plans
- New Jersey Hospital Association
- Hospital Collaborative of New Jersey
- Medical Society of New Jersey
- New Jersey State Nurses Association
- New Jersey Primary Care Association
Current program vendors
- Aetna
- Horizon Blue Cross Blue Shield of New Jersey
- Optum Rx
Public-employer organizations
- New Jersey Association of Counties
- New Jersey Association of School Administrators
- New Jersey Conference of Mayors
- New Jersey Council of County Colleges
- New Jersey State League of Municipalities
- New Jersey School Boards Association
- New Jersey Urban Mayors Association
Legislative offices
- Assembly Majority Office
- Assembly Republican Office
- Senate Majority Office
- Senate Republican Office
Throughout the process, the Administration will engage additional stakeholders and subject-matter experts, including those that are not formally represented in the working group. This helps work to guarantee that the group’s recommendations rely on relevant expertise and reflect the perspectives of those who provide, administer, fund and rely on public employee health benefits.
New Jersey administers several different health-benefit programs, covering State employees, local government employees and education employees. They each contain different plans, participating groups, governing bodies and legal requirements, so the Administration will coordinate the recommendations from the working group with work addressing the Local Government Group and the School Employees’ Health Benefits Program.