Proposed Legislation by Senator Gormley
Senator William Gormley (R-Atlantic) has proposed a bill which would make drastic changes to the State Health Benefits Program. While the text of this legislation is not yet available, we know that several of its provisions are highly objectionable. The proposed legislation would mandate premium sharing by employees and would eliminate NJ Plus and the traditional components of the state plan in favor of a PPO (preferred provider option).
The bill, S-2282, would affect state, county, municipal, and school employees within the SHBP. As soon as GR and Research can analyze the full text of this bill, we will share additional information. S-2282 is not expected to be considered until such time as the current special session is concluded in mid-November.
NJEA members should contact Senator Gormley’s office via phone, letter, fax or email to let him know their strong objections to his proposed legislation.
SENATOR William Gormley, R
Hamilton Mall, Suite 108
Black Horse Pike
Mays Landing, NJ 08330
(609) 646-3500 (609) 646-6735 FAX
SenGormley@njleg.org e-mail address
Wednesday, October 18, 2006
Tuesday, October 17, 2006
October 18 Pension and Benefits Reform Committee Hearing
Topic: Pension and Health Beneftis Reform
Date: October 18, 2006
Time: 4 p.m.
Location: Gloucester Community College (College Center)
Here we go again!!!
There will be a joint legislative committee hearing on Health Benefits and Pension Reform (details are listed above.) As you are aware, the issues being heard by this committee can have devastating and far reaching impact on you and your members. It is imperative that we recruit as many members as possible to attend this hearing.
We again realize that this is short notice; however, this is part of the legislaters' game plan. Email us ASAP with a list of members who will attend. We will supply you with directions.
Again, our thanks.
Donna, Gail, Gale, and Dawn
Region 3
Date: October 18, 2006
Time: 4 p.m.
Location: Gloucester Community College (College Center)
Here we go again!!!
There will be a joint legislative committee hearing on Health Benefits and Pension Reform (details are listed above.) As you are aware, the issues being heard by this committee can have devastating and far reaching impact on you and your members. It is imperative that we recruit as many members as possible to attend this hearing.
We again realize that this is short notice; however, this is part of the legislaters' game plan. Email us ASAP with a list of members who will attend. We will supply you with directions.
Again, our thanks.
Donna, Gail, Gale, and Dawn
Region 3
Friday, October 06, 2006
State Health Benefits Changes for 2007
October 2, 2006
State Health Benefits Commission Changes Benefits & Rates for 2007
More actions expected in coming months
Despite extensive lobbying by NJEA, the State Health Benefits Commission (SHBC) voted on Sept. 5, 2006, to make major changes to benefits in the State Health Benefits Plan (SHBP). In addition, beginning Jan. 1, 2007, board-paid premiums will increase in the Traditional, NJ PLUS, HMO, and the SHBP Prescription Drug Card plans. In addition, rates were adopted for under age-30 dependents.
When news leaked out about the commission’s plans to adopt benefits changes, NJEA members, including a large contingent of retirees, packed the commission’s recent meetings. The commission, however, rejected the issues raised by public employee representatives about the negative impact of the proposed modifications to the plan.
The commission-adopted SHBP rates are based on the following modifications to the state plan:
· Eliminating dual coverage, known as coordination of benefits, in the SHBP when a husband and wife or domestic partners are both eligible for coverage whether active employees or retired. This means that if both individuals are eligible for enrollment or participation in the SHBP, one can enroll for single coverage and the other for parent/dependent coverage. The two individuals would no longer both be able to enroll for family coverage with each covering their spouse/partner and eligible dependents. While included in the rate action, this proposal will not take effect until adopted as regulation under the Administrative Procedures Act, following a 60-day public comment period.
· Increasing the NJ PLUS/HMO office visit co-payments from $5 to $10 for both active employees and retirees.
· Increasing the SHBP Prescription Drug Card program co-pays for active employees from $1 for generic/$5 for brand names at retail and mail-order pharmacies to $3 for generic/$10 for brand names at retail stores and $5 for generic/$15 for brand names through mail-order.
· Increasing the Retiree Prescription Drug Card Program out-of-pocket maximum from $1,000 to $1,082 in 2007 and increasing by $1 certain prescription co-payments for retirees.
Proposed changes to be adopted through regulatory process
Change in dependent premium sharing ---
Under current regulations, all employees in a school district must be treated the same in terms of premium sharing for dependents (the benefits and additional cost an employer must pay for dependent coverage.)
The State Health Benefits Commission is proposing to allow public employers, including school boards, to bargain different premium-sharing arrangements for dependent coverage for different categories of employees. If this change passes a board could choose, for example, to provide free coverage for the chief school administrator’s spouse and try to bargain 50 percent premium sharing for other school staff.
These proposed changes to the administrative code are being published in the New Jersey Register for official public notification. There must be a 60-day public comment period prior to final adoption.
Plan to mandate generic and mail-order drugs delayed until January
The commission tabled until its January meeting further discussion of a proposal for mandatory substitution of generic and mail-order drugs for prescriptions.
The N.J. Division of Pensions and Benefits has stated the delay will give it time to develop an education program for plan participants prior to the proposal’s implementation. The division indicated it intends to seek commission approval for this change in January.
NJEA’s response ---
A group of NJEA officers, staff, and attorneys are meeting to review the legality of the commission’s actions in adopting changes in the SHBP, particularly those which were not published in advance nor adequately advertised to allow for public comment.
An advisory outlining the actions of the SHBC will be sent to NJEA UniServ staff to assist them in providing guidance to NJEA affiliates.
SHBP fiscally sound, commission’s actuary says ---
The changes come at a time when the commission’s actuarial firm, Aon, Inc., reported that the SHBP’s medical claims experience has been much lower than the benchmark values from Aon’s national trend survey. This means that the claims filed through the SHBP are increasing at a lower rate than comparable plans nationwide, a trend that has continued for at least the past two years.
According to Aon, Inc., the SHBP local employer group is financially solvent, with a projected cumulative surplus of approximately $247 million or about two months of projected plan expenses.
State Health Benefits Commission Changes Benefits & Rates for 2007
More actions expected in coming months
Despite extensive lobbying by NJEA, the State Health Benefits Commission (SHBC) voted on Sept. 5, 2006, to make major changes to benefits in the State Health Benefits Plan (SHBP). In addition, beginning Jan. 1, 2007, board-paid premiums will increase in the Traditional, NJ PLUS, HMO, and the SHBP Prescription Drug Card plans. In addition, rates were adopted for under age-30 dependents.
When news leaked out about the commission’s plans to adopt benefits changes, NJEA members, including a large contingent of retirees, packed the commission’s recent meetings. The commission, however, rejected the issues raised by public employee representatives about the negative impact of the proposed modifications to the plan.
The commission-adopted SHBP rates are based on the following modifications to the state plan:
· Eliminating dual coverage, known as coordination of benefits, in the SHBP when a husband and wife or domestic partners are both eligible for coverage whether active employees or retired. This means that if both individuals are eligible for enrollment or participation in the SHBP, one can enroll for single coverage and the other for parent/dependent coverage. The two individuals would no longer both be able to enroll for family coverage with each covering their spouse/partner and eligible dependents. While included in the rate action, this proposal will not take effect until adopted as regulation under the Administrative Procedures Act, following a 60-day public comment period.
· Increasing the NJ PLUS/HMO office visit co-payments from $5 to $10 for both active employees and retirees.
· Increasing the SHBP Prescription Drug Card program co-pays for active employees from $1 for generic/$5 for brand names at retail and mail-order pharmacies to $3 for generic/$10 for brand names at retail stores and $5 for generic/$15 for brand names through mail-order.
· Increasing the Retiree Prescription Drug Card Program out-of-pocket maximum from $1,000 to $1,082 in 2007 and increasing by $1 certain prescription co-payments for retirees.
Proposed changes to be adopted through regulatory process
Change in dependent premium sharing ---
Under current regulations, all employees in a school district must be treated the same in terms of premium sharing for dependents (the benefits and additional cost an employer must pay for dependent coverage.)
The State Health Benefits Commission is proposing to allow public employers, including school boards, to bargain different premium-sharing arrangements for dependent coverage for different categories of employees. If this change passes a board could choose, for example, to provide free coverage for the chief school administrator’s spouse and try to bargain 50 percent premium sharing for other school staff.
These proposed changes to the administrative code are being published in the New Jersey Register for official public notification. There must be a 60-day public comment period prior to final adoption.
Plan to mandate generic and mail-order drugs delayed until January
The commission tabled until its January meeting further discussion of a proposal for mandatory substitution of generic and mail-order drugs for prescriptions.
The N.J. Division of Pensions and Benefits has stated the delay will give it time to develop an education program for plan participants prior to the proposal’s implementation. The division indicated it intends to seek commission approval for this change in January.
NJEA’s response ---
A group of NJEA officers, staff, and attorneys are meeting to review the legality of the commission’s actions in adopting changes in the SHBP, particularly those which were not published in advance nor adequately advertised to allow for public comment.
An advisory outlining the actions of the SHBC will be sent to NJEA UniServ staff to assist them in providing guidance to NJEA affiliates.
SHBP fiscally sound, commission’s actuary says ---
The changes come at a time when the commission’s actuarial firm, Aon, Inc., reported that the SHBP’s medical claims experience has been much lower than the benchmark values from Aon’s national trend survey. This means that the claims filed through the SHBP are increasing at a lower rate than comparable plans nationwide, a trend that has continued for at least the past two years.
According to Aon, Inc., the SHBP local employer group is financially solvent, with a projected cumulative surplus of approximately $247 million or about two months of projected plan expenses.
Thursday, October 05, 2006
NEWS FROM THE SPECIAL LEGISLATIVE SESSION
EYE ON TRENTON
News from the Special Legislative Session
>Contact your legislators
>Read more on njea.org's Special Session page
MISINFORMATION ALERT!
Senator Cardinale claimed that charter schools cost less per child and have higher test results. Here’s the National Assessment of Education Progress report card that shows charter school students’ performance lags behind their public school counterparts. Read more on the committee’s proceedings.
NJEA Launches Newsletters on the Special Session
NJEA is launching an e-newsletter for staff and a similar one for members about the special legislative session. This first issue provides extensive background about developments since July. Future editions will be very brief updates e-emailed regularly. Each issue will also be available for staff on the home page of the NJEA intranet and for members in the pen-ben section of www.njea.org.
Governor Corzine Calls Special Session of the Legislature
On July 28, 2006 Governor Corzine addressed a joint session of the New Jersey State Legislature. Read his speech
He called upon the Legislature to meet in a “special session” to create a plan to reform and reduce property taxes. The Legislature created four bi-partisan, bi-cameral committees to address issues related to tax reform. These committees met throughout August and will continue to meet weekly throughout the fall. Each committee has been charged with the task of developing a report and recommendations by mid-November. Read more information on Corzine’s expectations from the special session.
The committees are known as:
The Joint Legislative Committee on Public School Funding Reform
The Joint Legislative Committee on Government Consolidation and Shared Services
The Joint Legislative Committee on Public Employee Benefits Reform
The Joint Legislative Committee on Constitutional Reform and Citizens Property Tax Constitutional Convention
Read more about each committee’s charge
So far, only the Joint Legislative Committee on Public Employee Benefits Reform and the Joint Legislative Committee on Constitutional Reform and Citizens Property Tax Constitutional Convention have heard public testimony. NJEA officers and leaders have testified before each of those committees.
NJEA leaders and members need to be aware of these deliberations and contact lawmakers to provide input into these important policy decisions.
After reading NJEA’s positions below, let your legislators know what you think.
Public School Funding ReformDOE refuses to make school funding formula public
The Joint Legislative Committee on Public School Funding Reform will be developing a new school funding formula. Clearly, New Jersey’s current school funding formula is outdated and unfair. NJEA supports the creation of a new school funding formula that will provide the necessary resources to ensure a high quality education for students in all districts, regardless of zip code.
The Department of Education has been working on a new formula, but has been unwilling to share its plan publicly. NJEA believes that the administration’s plans should be shared with the education community and the public now.
As of Oct. 4, the Joint Legislative Committee on Public School Funding Reform has held eight meetings. Five more meetings are scheduled for October.
So far, the committee has heard testimony on school funding litigation and funding formula types, CEIFA and S-1701, cost-cutting measures, No Child Left Behind, approaches to determining the cost of education, and the New Jersey Quality Single Continuum (NJQSAC) law. Read more on this committee.
On Tuesday, September 5, NJEA President Joyce Powell and other NJEA leaders testified before the committee on cost-cutting measures. Read testimony.
On Tuesday, Oct. 10, President Powell and other local leaders will be presenting testimony at the committee’s first public hearing.
Government Consolidation and Shared Services
NJEA: No compromise on school quality
The Joint Legislative Committee on Government Consolidation and Shared Services will be developing recommendations on sharing services and regionalizing functions at all levels of government, including schools. NJEA supports efforts to create efficiencies. However, NJEA also believes that regionalization should be voluntary and considered on a case-by-case basis, not as a statewide mandate or policy.
Most importantly, any plan to consolidate or regionalize services must not diminish educational quality just to cut costs.
As of September 30, 2006, the Joint Legislative Committee on Government Consolidation and Shared Services has held five meetings. View the proceedings.
Public Employee Benefits Reform
The Joint Legislative Committee on Public Employee Benefits Reform has been charged with developing proposals to control the cost of public employee benefits and address pension and benefits abuses. While NJEA supports eliminating abuses to the system, lawmakers need to understand that our members are not the problem!
In the FY 2007 State Budget, lawmakers made the first significant pension contribution in a decade—ending a nine year “pension holiday” during which the state skipped making its required payments. While the State was enjoying its pension holiday, public employees continued to make their required contributions out of each pay check. Now the fund is running low and some lawmakers want to scapegoat public employees as having caused this problem.
As of September 30, 2006, the committee has held six meetings. View the proceedings.
On Tuesday, September 19, more than 200 NJEA members and members of other public employee unions attended the committee’s meeting in Clifton High School. NJEA speakers Joyce Powell, Jacqui Greadington, and Joe Coppola, Jr., received standing ovations from the audience. Read their testimony.
Constitutional Reform and Citizens Property Tax Constitutional Convention
The Joint Legislative Committee on Constitutional Reform and Citizens Property Tax Constitutional Convention has been charged with developing proposals to address property tax reform through amendments to the New Jersey State Constitution. They also must consider the possibility of a constitutional convention.
New Jersey has relied too heavily on property taxes to fund our schools for too long. Schools and school employees are being targeted for the legislature’s failure to fix the broken property tax system. We need reform and we need it now. The legislature has the responsibility and the expertise to get the job done. They should do their job and not abdicate their responsibilities to a citizens’ convention which would not be able to provide reform until 2008 or 2009.
NJEA believes that the Legislature can and should reform property taxes without penalizing public schools. Legislation like the SMART bill would shift the burden from property taxes to income taxes for school funding, which would be a fairer system of taxation.
To read more about the SMART bill go to http://www.reformschooltaxes.com/.
As of September 25, 2006, the committee has held five meetings. NJEA Secretary-Treasurer Wendell Steinhauer provided NJEA’s official testimony to the committee on September 21. On September 28, four NJEA leaders testified at another committee meeting and reiterated NJEA’s position. Read NJEA’s testimony. More on this committee.
180 West State Street Trenton, NJ 08607-1211 (609) 599-4561 http://www.njea.org/
News from the Special Legislative Session
>Contact your legislators
>Read more on njea.org's Special Session page
MISINFORMATION ALERT!
Senator Cardinale claimed that charter schools cost less per child and have higher test results. Here’s the National Assessment of Education Progress report card that shows charter school students’ performance lags behind their public school counterparts. Read more on the committee’s proceedings.
NJEA Launches Newsletters on the Special Session
NJEA is launching an e-newsletter for staff and a similar one for members about the special legislative session. This first issue provides extensive background about developments since July. Future editions will be very brief updates e-emailed regularly. Each issue will also be available for staff on the home page of the NJEA intranet and for members in the pen-ben section of www.njea.org.
Governor Corzine Calls Special Session of the Legislature
On July 28, 2006 Governor Corzine addressed a joint session of the New Jersey State Legislature. Read his speech
He called upon the Legislature to meet in a “special session” to create a plan to reform and reduce property taxes. The Legislature created four bi-partisan, bi-cameral committees to address issues related to tax reform. These committees met throughout August and will continue to meet weekly throughout the fall. Each committee has been charged with the task of developing a report and recommendations by mid-November. Read more information on Corzine’s expectations from the special session.
The committees are known as:
The Joint Legislative Committee on Public School Funding Reform
The Joint Legislative Committee on Government Consolidation and Shared Services
The Joint Legislative Committee on Public Employee Benefits Reform
The Joint Legislative Committee on Constitutional Reform and Citizens Property Tax Constitutional Convention
Read more about each committee’s charge
So far, only the Joint Legislative Committee on Public Employee Benefits Reform and the Joint Legislative Committee on Constitutional Reform and Citizens Property Tax Constitutional Convention have heard public testimony. NJEA officers and leaders have testified before each of those committees.
NJEA leaders and members need to be aware of these deliberations and contact lawmakers to provide input into these important policy decisions.
After reading NJEA’s positions below, let your legislators know what you think.
Public School Funding ReformDOE refuses to make school funding formula public
The Joint Legislative Committee on Public School Funding Reform will be developing a new school funding formula. Clearly, New Jersey’s current school funding formula is outdated and unfair. NJEA supports the creation of a new school funding formula that will provide the necessary resources to ensure a high quality education for students in all districts, regardless of zip code.
The Department of Education has been working on a new formula, but has been unwilling to share its plan publicly. NJEA believes that the administration’s plans should be shared with the education community and the public now.
As of Oct. 4, the Joint Legislative Committee on Public School Funding Reform has held eight meetings. Five more meetings are scheduled for October.
So far, the committee has heard testimony on school funding litigation and funding formula types, CEIFA and S-1701, cost-cutting measures, No Child Left Behind, approaches to determining the cost of education, and the New Jersey Quality Single Continuum (NJQSAC) law. Read more on this committee.
On Tuesday, September 5, NJEA President Joyce Powell and other NJEA leaders testified before the committee on cost-cutting measures. Read testimony.
On Tuesday, Oct. 10, President Powell and other local leaders will be presenting testimony at the committee’s first public hearing.
Government Consolidation and Shared Services
NJEA: No compromise on school quality
The Joint Legislative Committee on Government Consolidation and Shared Services will be developing recommendations on sharing services and regionalizing functions at all levels of government, including schools. NJEA supports efforts to create efficiencies. However, NJEA also believes that regionalization should be voluntary and considered on a case-by-case basis, not as a statewide mandate or policy.
Most importantly, any plan to consolidate or regionalize services must not diminish educational quality just to cut costs.
As of September 30, 2006, the Joint Legislative Committee on Government Consolidation and Shared Services has held five meetings. View the proceedings.
Public Employee Benefits Reform
The Joint Legislative Committee on Public Employee Benefits Reform has been charged with developing proposals to control the cost of public employee benefits and address pension and benefits abuses. While NJEA supports eliminating abuses to the system, lawmakers need to understand that our members are not the problem!
In the FY 2007 State Budget, lawmakers made the first significant pension contribution in a decade—ending a nine year “pension holiday” during which the state skipped making its required payments. While the State was enjoying its pension holiday, public employees continued to make their required contributions out of each pay check. Now the fund is running low and some lawmakers want to scapegoat public employees as having caused this problem.
As of September 30, 2006, the committee has held six meetings. View the proceedings.
On Tuesday, September 19, more than 200 NJEA members and members of other public employee unions attended the committee’s meeting in Clifton High School. NJEA speakers Joyce Powell, Jacqui Greadington, and Joe Coppola, Jr., received standing ovations from the audience. Read their testimony.
Constitutional Reform and Citizens Property Tax Constitutional Convention
The Joint Legislative Committee on Constitutional Reform and Citizens Property Tax Constitutional Convention has been charged with developing proposals to address property tax reform through amendments to the New Jersey State Constitution. They also must consider the possibility of a constitutional convention.
New Jersey has relied too heavily on property taxes to fund our schools for too long. Schools and school employees are being targeted for the legislature’s failure to fix the broken property tax system. We need reform and we need it now. The legislature has the responsibility and the expertise to get the job done. They should do their job and not abdicate their responsibilities to a citizens’ convention which would not be able to provide reform until 2008 or 2009.
NJEA believes that the Legislature can and should reform property taxes without penalizing public schools. Legislation like the SMART bill would shift the burden from property taxes to income taxes for school funding, which would be a fairer system of taxation.
To read more about the SMART bill go to http://www.reformschooltaxes.com/.
As of September 25, 2006, the committee has held five meetings. NJEA Secretary-Treasurer Wendell Steinhauer provided NJEA’s official testimony to the committee on September 21. On September 28, four NJEA leaders testified at another committee meeting and reiterated NJEA’s position. Read NJEA’s testimony. More on this committee.
180 West State Street Trenton, NJ 08607-1211 (609) 599-4561 http://www.njea.org/
Wednesday, October 04, 2006
PUBLIC HEARING - TUESDAY, OCTOBER 10th
NOTICE OF PUBLIC HEARING
October 10, 2006 -- Collingswood Scottish Rite Auditorium
315 White Horse Pike
Collingswood
The Joint Legislative Committee on Public School Funding Reform will hold a public hearing on Tuesday, October 10, 2006 from 5:30 to 9:00 PM at the Ballroom and Theater at Collingswood.
We need to recruit 125 – 150 members to fill the auditorium!!!!
Thanking you in advance for your assistance.
October 10, 2006 -- Collingswood Scottish Rite Auditorium
315 White Horse Pike
Collingswood
The Joint Legislative Committee on Public School Funding Reform will hold a public hearing on Tuesday, October 10, 2006 from 5:30 to 9:00 PM at the Ballroom and Theater at Collingswood.
We need to recruit 125 – 150 members to fill the auditorium!!!!
Thanking you in advance for your assistance.
Monday, October 02, 2006
URGENT MESSAGE REGARDING SPARKS AND THE OVERNIGHT WORKSHOP
Approximately one week ago, all local presidents received a mailing from our office regarding a SPARKS pilot which is being held at the Camden County Overnight Workshop. After speaking with several local association presidents, it appears that there is some confusion with the timing of this announcement. This pilot is a special and unique opportunity for associations in Camden County only.
It is our understanding that you also recently received a SPARKS nomination form which is being returned to Nancy Volpe. These are two separate and non-related experiences. Nancy Volpe's mailing deals with a statewide experience and is completely unrelated to this overnight pilot referenced above.
We are strongly encouraging you to nominate a new member for the SPARKS pilot at the Camden County Overnight Workshop. The SPARKS nominees must return their surveys to Region 3 no later than Thursday, October 5.
We hope that this communication clarifies any confusion you may have had. Please contact the Region 3 office with any questions or concern you may have.
Our sincere thanks for helping to make this experience possible.
It is our understanding that you also recently received a SPARKS nomination form which is being returned to Nancy Volpe. These are two separate and non-related experiences. Nancy Volpe's mailing deals with a statewide experience and is completely unrelated to this overnight pilot referenced above.
We are strongly encouraging you to nominate a new member for the SPARKS pilot at the Camden County Overnight Workshop. The SPARKS nominees must return their surveys to Region 3 no later than Thursday, October 5.
We hope that this communication clarifies any confusion you may have had. Please contact the Region 3 office with any questions or concern you may have.
Our sincere thanks for helping to make this experience possible.
Subscribe to:
Posts (Atom)