Republicans Slam Proposed 37% Increase on New Jersey Public Sector Employee Benefits Premiums

The proposed increase comes as the state offers free coverage to undocumented children

The New Jersey State Health Benefits Commission is considering a massive 37% increase in healthcare premiums for public sector employees—an increase that, if enacted, comes just days after the Democratic-controlled legislature passed a $58 billion budget which includes free health care for illegal immigrants.

The proposal comes just one week after outgoing Governor Phil Murphy signed the record high state budget which raises taxes and boosts government spending into law, drawing heavy criticism from Republicans for worsening New Jersey’s affordability crisis.

Republicans have argued the budget prioritizes politically expedient programs while neglecting the financial health of essential public systems.

While many public employees currently pay up to $15,000 annually in premium sharing and copays, the new budget includes full state-subsidized healthcare coverage—with no copays or premiums—for children of undocumented immigrant families earning up to 350% of the federal poverty level, or more than $115,000 for a family of four.

“This administration and the one-party Democrat rule in Trenton have completely mismanaged the Public Employee Health Benefits system and the budget,” said Senate Republicans Anthony Bucco and Declan O’Scanlon in a joint statement. “Now they’re expecting taxpayers and our dedicated public workers to pick up the tab for their failures with a 37% increase in their healthcare costs with the empty promise of finally fixing this long-overdue problem that they have ignored for years.”

They also warned that the SHBP is on the brink of collapse, citing unsustainable premium hikes and declining enrollment. They describe the current trajectory as a “death spiral,” where increasing costs further discourage participation, accelerating the program’s deterioration.

According to the Republican senators, the planned premium increase would still leave the State Health Benefits Program (SHBP) operating at a deficit.

“We need leadership who is willing to make real structural reforms to protect workers, stabilize the system, and restore fiscal responsibility,” they added. “A new governor can’t come soon enough. Only then will serious solutions finally be on the table.”

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6 COMMENTS

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the BIG guy
4 months ago

Murphy , you expect legal citizens to shoulder this fiscal irresponsibility so that illegal immigrants can have FREE insurance ? Wake up people.

Leo Joseph Selm
4 months ago

Murphy,

You are despicable. Out of touch. Ignorant. I thought Florio was worst nj gov but you top them all. Thanks for the tax increases and stealing my $$$ to fund illegals. Thanks scrooge. You stink.

Jersey Guy
4 months ago

State retires, police, teachers, etc haven’t seen a pension cost of living increase in years if any. Now you expect a 37% increase to health insurance to employees. As folks struggle with deals NJ cut to increase utility rates, and you ignore cost of living. True back door politics as you leave office.

Onlyonewithbrain
4 months ago

“Free healthcare for illegal immigrants” is a bit of an overstatement. What’s actually happening in NJ’s budget is they’re using state money to provide healthcare for kids from undocumented families. It’s called “Cover All Kids.”

So, it’s not like everyone who’s undocumented is getting full free healthcare. It’s specifically for kids, and even then, it’s usually tied to income limits.

Tell us the whole story
4 months ago

It sounds like this will provide more coverage for non-citizens than for citizens.
Am I reading that correctly? Or does this increased coverage apply to citizens too?

Cheri
4 months ago

If this is true, absolutely NO! Why should undocumented children receive what a citizen can’t.