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New Jersey's Health Care Deal for Public Employees Is Expiring

The higher costs paid by state workers could fall to taxpayers.

Hundreds of thousands of public workers began paying more for their health care benefits after Governor Christie overhauled the system in 2011 — a massive shift that would save New Jersey taxpayers $3 billion over 10 years, administration officials said at the time.

 

But just four years in, instead of the expected savings, state and local taxpayers are staring at the prospect of footing more of the bill for those medical coverage plans.

The reason: Tucked inside the sprawling 2011 reform law is a sunset provision that says the higher payments required of public workers will expire in four years. After that, the provision says, all health care costs must again be negotiated at the bargaining table as union contracts come up for renewal.

For much of the workforce, that change kicks in at the end of this month.

 

 

Daniel Luzer is GOVERNING's news editor.