Senate Republican Leader Anthony M. Bucco and Senate Republican Budget Officer Declan O’Scanlon are urging the New Jersey Legislature to convene a special session to address proposed premium increases in the State Health Benefits Program. They want lawmakers to pass SCR-61, which would establish a bipartisan committee to investigate rising health care costs for public employees.
On August 1, state representatives from the State Health Benefits Program Plan Design Committee submitted cost analysis proposals. Bucco and O’Scanlon argue that immediate action is needed to review these savings proposals from both unions and the state before significant budget impacts occur.
The lawmakers are concerned about a proposed 37% increase in premiums for the State Health Benefits Program. They say this increase could strain municipal and school budgets and lead to higher property taxes across New Jersey.
“It’s crucial for the Legislature to examine the proposed premium hikes to identify what’s really driving these costs,” said Bucco. “While inflation may play a role, there’s no doubt that mismanagement and weak oversight of the state health benefits plan by the Murphy administration and Trenton Democrats are major contributors. This isn’t about placing blame, it’s about getting ahead of a crisis. If we wait until fall, we risk locking in devastating costs for taxpayers and public employees alike.”
O’Scanlon highlighted how these changes could affect many people: “The proposed premium hikes will affect hundreds of thousands of state and local government employees, including teachers and retirees, who will face significantly higher health care costs if this plan moves forward,” he said. “These increased premiums will also place a heavy burden on school districts and local governments, which cover a substantial share of employee insurance costs. If we don’t act now, families across New Jersey will feel the impact in the form of even higher property taxes. We can’t afford to wait until the damage is done, Trenton must reconvene immediately.”
SCR-61 was first introduced in 2022 as an effort to create a joint committee from both chambers of the Legislature tasked with investigating why premiums are rising so steeply. The committee would also assess contract oversight and look into whether problems within state agencies have hurt cost recovery or benefits management.
Bucco and O’Scanlon criticized recent Democratic initiatives like Assembly bill A-5903 and a new Senate work group as insufficient responses.
“Assembly Democrats are pushing a bill that the Murphy administration has already labeled a non-starter. Senate Democrats formed a work group that excludes Republican voices. None of it’s serious. It’s all designed to save face, not fix the system. Time is running out, there needs to be a sense of urgency. The Legislature needs to return to Trenton now before it’s too late,” O’Scanlon warned.
They insist lawmakers should reconvene soon so solutions can be found before budget deadlines arrive later in the year.
Republicans have previously called attention to issues with public employee health benefit programs over several years through statements on budget proposals, criticisms of administration actions regarding benefit deals, and calls for alternatives as financial risks mount for both taxpayers and workers.
