DePhillips, Bramnick cost-saving legislation puts spouses in same public health benefits plan

TRENTON, N.J. – Assemblymen Christopher P. DePhillips and GOP Leader Jon Bramnick introduced a bill Thursday to limit the costs of public health benefits by requiring spouses who are both public employees to be covered under one plan.

“New Jersey’s fiscal path is unsustainable largely because of the high costs associated with pensions and health benefits,” said DePhillips (R-Bergen).

A report issued by a policy working group commissioned by Senate President Steve Sweeney noted that pension and health benefit costs will increase by $4.1 billion over the next four years, which exceeds projected revenue growth.  There have been no funds set aside for health benefits, which has a total $36.5 billion liability according to the report.

“For that reason we wrote legislation, recommended by a bi-partisan report, requiring families with multiple state or local government employers to select only one health plan,” continued DePhillips.

Under the bill (A-4518), the spouse with a higher salary will select health benefit coverage, as the other will become ineligible for personal public health benefits.  The bill also prohibits state and local governments from making payments to an employee who waives coverage because it is selected by their spouse.  It is not subject to collective bargaining.

“Republicans are intent on keeping the promises made to government employees while reigning in health care costs,” said Bramnick (R-Union).  “This is a simple step, but it is common sense, bi-partisan, and something that will continually save taxpayers’ money year-in and year-out.”

The group’s report also noted that although savings are indeterminate, they could be substantial.  In 2022, a 40 percent tax on platinum health benefits will take effect.  If this bill is passed, it will expose fewer health benefit plans, and state and local governments, to the tax – significantly increasing savings.

“I strongly believe that our state has made a promise to our employees, and I also strongly believe that costs need to be cut to maintain those benefits long term.  To keep these promises and provide room for our state to grow and be competitive we need to put forth legislation that adapts to our past, current and future fiscal circumstances,” DePhillips concluded.