TRENTON, NJ – CWA District 1 issued the following statement in response to today’s State Health Benefits Commission meeting:

Today’s SHBC meeting underscored just how urgent this crisis has become, and how important it is that the State move quickly, transparently, and effectively to protect workers, retirees, and taxpayers. CWA District 1 supports Governor Mikie Sherrill’s commitment to rein in pharmacy benefit managers (PBMs) and bring greater accountability to New Jersey’s state health benefits (SHBP) system. We recognize that Governor Sherrill has inherited a deeply troubled situation, and we are encouraged by the work already underway to address this crisis.

The mid-year report released earlier today made clear that New Jersey’s public health benefits crisis is worsening, especially for local government workers and retirees. Cost pressures are intensifying across both the State and local government plans, with the local government side facing particularly severe instability. More than 20 percent of local government participants have already exited the plan, reserves remain under strain, and the remaining members are left to absorb rising costs. The clear culprit of these increases is unchecked, unregulated and unrestrained price increases. The report given to the Commission today clearly demonstrated that price increases are the main driver of overall costs, not utilization. NJ’s cost trend outpaces peers and the actuary’s book of business - NJ must intervene to control prices.

At the same time, workers and retirees have already agreed to significant plan changes to help address these costs, and those changes will take effect on July 1, 2026. These include higher in-network deductibles, new restrictions on where certain procedures can be performed, higher copays for GLP-1 medications, and even higher copays for those who do not join in a lifestyle management program. It is clear that cost-shifting is not a viable solution to address this problem, and real structural reform is urgently needed.

That urgency is only heightened by the delay in rebidding its pharmacy benefit manager contract. It is considered best practice to conduct a reverse auction every two to three years to ensure competitive pricing and protect taxpayers and plan members. New Jersey is now approaching eight years without doing so, leaving hundreds of millions of dollars in savings on the table at a time when the health benefits system is under severe strain.

CWA District 1 is calling for immediate transparency, stronger oversight, and a clear corrective plan. New Jersey’s public workers cannot continue to bear higher costs while the underlying structural problems go unresolved.

CWA District 1 represents 145,000 workers in New Jersey, New York, and New England, including 70,000 workers in New Jersey. CWA members work in public service, telecommunications, healthcare, higher education, manufacturing, broadcast and cable television, commercial printing and newspapers, and more.