Legislation sponsored by Senator Declan O’Scanlon and signed today by the Governor promises to save New Jersey taxpayers more than $600 million.
Legislation sponsored by Senator O’Scanlon and signed into law today could save New Jersey taxpayers more than $600 million. (SenateNJ)
“This has been a long time coming,” said O’Scanlon (R-13). “It has taken almost 10 years of discussion and fighting, desk-pounding and compromise. The result is reform we can all live with that will benefit property taxpayers, teachers, and our students.”
Signed at a public event in Union, the new law (S-2273/A-20) revises the School Employees’ Health Benefits Program (SEHBP) to address skyrocketing health care costs.
“New Jersey has a national reputation for outrageous property taxes and reining in the cost of health benefits for public workers is step toward more affordability,” said O’Scanlon. “Property taxes are a major concern for taxpayers who are considering moving out of state. The productive compromise behind this measure sends a positive message to overburdened residents.”
The potential savings for taxpayers and teachers is estimated at close to $1 billion. NJEA members could save $400 million under the bipartisan plan.
Under the law, SEHBP would offer only three plans for medical and prescription coverage, and employees and retirees must contribute a percentage of health coverage costs.
The level of benefits in the three SEHBP plans, the Garden State Health Plan, the NJ Direct 10, and the NJ Direct 15 plan will remain unchanged until June 30, 2027.