Local Government Associations Oppose Unprecedented Health Care Contribution Increase

Trenton, NJ (September 14, 2022) The New Jersey State League of Municipalities and New Jersey Association of Counties issued the following statements following the vote by the State Health Benefits Commission early today to increase local government health care costs by approximately 20%.

John G. Donnadio, Executive Director of the New Jersey Association of Counties said:

We’re disappointed that the State Health Benefits Commission voted to support unprecedented health benefit rate increases as a matter of routine business at its meeting by telephone conference earlier today without due consideration for local governments, property taxpayers, or public employees already struggling to make ends meet. As such, NJAC is recommending that participating members leave the State Health Benefits Program if feasible as the rate approval process demonstrated the Commission’s lack of transparency, accountability, and foresight to accurately project substantial rate increases with such far reaching consequences.

Michael F. Cerra, Executive Director of the New Jersey State League of Municipalities stated:

The unprecedented health benefit rate increase approved today by the SHBC will have a staggering impact on municipalities, local government employees, and property taxpayers. This was avoidable and there were options that could and should have been taken, including delaying the vote today and engage an open and transparent process. Local governments will now do their due diligence and explore more cost effective alternatives. Now we call on the Administration and Legislature to act immediately, engage local stakeholders and focus on cost savings solutions that will benefit employors, employees and taxpayers.

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