Sticker Shock: NJ Outpaces Nation On Public Healthcare Costs

health-insurance-blue-logoBy: The Governor’s Office: More Expensive Than Almost Every Other State, More Expensive Than The Private Sector And Even More Expensive In The Future.

More Expensive Than Almost Any Other State:

A recent study by the The Pew Charitable Trusts and the MacArthur Foundation found that New Jersey provides the 3rd most expensive health benefit plans for public employees in the nation. (“State Employee Health Plan Spending,” The Pew Charitable Trusts, 8/13/14)

· The average total premium for health coverage per state employee in New Jersey is 39% higher than the national average.

· Of that premium, the employer contribution – meaning New Jersey taxpayers – is 95 percent, compared with 84% nationwide.

More Expensive Than The Private Sector:

The health insurance provided to New Jersey state employees is among the most generous coverage in the nation. Yet state employees contribute far less towards covering the cost of their health insurance than private-sector workers.

At the same time, New Jersey taxpayers contribute far more towards covering the cost of health insurance for state government workers than the average private-sector employer pays to cover its employees.

Even More Expensive In The Future:

For Fiscal Year 2014, the State is expected to pay $2.76 billion in healthcare benefits costs to cover retired and active employees.

· According to a recent study by the Pew Charitable Trusts and the MacArthur Foundation, total state spending on healthcare expenditures grew 15% in just two years. (“State Employee Health Plan Spending,” The Pew Charitable Trusts, 8/13/14)

New Jersey’s health insurance is so generous that the State will soon be further burdened by the so-called “Cadillac Tax” as part of Obamacare on high-cost, high-benefit plans:

· By Fiscal Year 2018, the State will be hit with a $261 million federal tax bill for its high-cost healthcare plans.

· By FY22, the State’s Cadillac tax will soar to $837 million.

[TLS]

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