CALL YOUR NJ ASSEMBLY MEMBERS AT 609-913-3014
Tell Them: “I’m calling to urge you to stick to your pledge to help address healthcare affordability and co-sponsor A5903, the Public Sector Healthcare Affordability and Responsible Governance Act.”
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Plan for Healthcare Affordability for Public Workers
Public Sector Healthcare Affordability and Responsible Governance Act (A5903)
Click here for a PDF version of this fact sheet.
New Jersey’s public sector workers in State and Local Governments deserve access to affordable, high-quality healthcare. Just after the latest state budget cut $200 million from healthcare benefits for the 2026 plan year, the actuary for the State Health Benefits Program Commission (SHBP) proposed rate increases of 37% for local government workers and 19.7% for state government workers.
These rate increases are another devastating blow to the health benefits plan covering 450,000 active and retired public servants. For example, a local government worker earning $50,000 a year with family coverage will contribute over $8,300 or 17% of their pay for benefits. A5903 will tackle this problem by addressing healthcare affordability, cost control, and governance & transparency.
Cost Control
Healthcare costs are skyrocketing, enriching hospital CEOs and health insurance companies at the expense of working people. The bill helps control costs by:
- Expanding an existing claims review program, which has already resulted in hundreds of millions of dollars of savings
- Putting guardrails on the use of GLP-1s, high-cost weight loss drugs that are driving up costs, while ensuring that employees and their dependents continue to have access to prescription drugs that are medically necessary.
- Requiring more frequent review and approval of new FDA-approved drugs to market, and controlling some of the highest-priced medications
Affordability
As a result of high costs, premiums, and out-of-pocket costs are increasingly unaffordable for State and Local Government workers. If the State adopts the latest proposal, local government workers are facing a 112% compounded increase in premiums, and state workers are facing a 69% compounded increase since 2021. This is unsustainable – and unacceptable. This bill will ensure affordability for Local Government employees and Local Governments by:
- Requiring the SHBP to offer 5 high-quality plans and, for 2 of those plans, base contribution rates on a percentage of salary rather than premiums
- For local governments outside of the SHBP, this bill triggers collective bargaining if the privately managed plan costs are higher than the SHBP
Governance & Transparency
For years, the State Health Benefits Plan (SHBP) has been mismanaged and is now on the brink of collapse. In order to ensure effective administration and management of the plan, the bill will reform the governance structure by:
- Expanding the State Health Benefits Commission to ensure equal representation for employees and employers and making sure all key stakeholders are at the table, including representatives from the League of Municipalities and the Association of Counties.
- Merging the powers of the Commission and the Plan Design Committee to make the governance of the SHBP more efficient
- Requiring transparency of insurance prices, performance of the insurance carriers and pharmacy benefit managers, and public contracting
State Health Benefits Cost Increases – Update & Next Steps
We all remember what happened in 2022 — a 20% increase in premiums that blindsided state workers with no warning, no transparency, and no accountability. We fought it then, we’ve been fighting it ever since, and unfortunately, we are back in that fight today — because once again, state workers are being forced to carry the cost of decisions we had no hand in making.
Here’s what’s happening right now:
Last week, the State Health Benefits Commission released a proposal for a 19.7% increase in state worker healthcare premiums.
At the same time, the Governor and Legislature passed a budget that includes $100 million in cuts to the SHBP — not real savings, but a budget gimmick that they will almost certainly try to make us bear the brunt of through increased costs or cuts to our care.
This wasn’t a mistake. This was a demand made in a backroom by Governor Murphy, and once again, state workers are being treated like a line item instead of the people who keep New Jersey running.
Let me be clear: this is a crisis, and CWA is not standing by. We’ve spent the past several months organizing and mobilizing, speaking with legislators, and building a broad coalition with a dozen other public worker unions to demand a solution to these unsustainable healthcare cost increases. And while the Governor has refused to negotiate or include us in the process, we have legislative allies who are standing with us, and a plan to fix this.
If you missed last night’s discussion and presentation, click here to watch the recording.
The only thing that changes the outcome is collective action. We’ve done it before — and we’ll do it again.-Billy Gallagher, Assistant to the Vice President, CWA District 1
Upcoming Actions & Meetings
We’ll need big turnout for these! Reach out to your CWA Local for more details and how to attend
• Thursday, July 24 – Committee Hearing in the Assembly on our healthcare bill, A5903
• Monday, July 28 – State Health Benefits Plan (SHBP) Meeting
CWA Statement on State of NJ Budget
Public Sector Unions Deliver Clear Message to Governor Murphy: You Have Betrayed Working People
“This budget is a betrayal of the very working people who elected him into office,” said Billy Gallagher, Assistant to the Vice President, CWA District 1. “Budgets are moral documents and this one makes painfully clear where Governor Murphy stands. Gov. Murphy has chosen to gut $100 million in health benefits for public sector workers and retirees.”
“What’s worse,” Gallagher continued, “for over a year and as recently as just three days ago, the labor members of the Plan Design Committee pushed for a plan design change that could save up to $1.1 billion in SHBP costs, without hurting workers. But the Administration refused to move it forward because it would have required renegotiating existing contracts with insurance carriers and Pharmacy Benefits Managers. It’s the height of hypocrisy that Gov. Murphy has no concern about breaking our contract and bypassing collective bargaining with public employees.”
Despite revenue projections now being $700 million higher than prior estimates, the $100 million cut will be imposed on the State Health Benefits Plan (SHBP), bypassing collective bargaining and setting up a new, unilateral process. This will result in higher co-pays, deductibles, and out-of-pocket costs for state employees and their families—at a time when the cost of living is already untenable. Additionally, this arbitrarily imposed cut comes less than two weeks before the expected premium rate report for plan year 2026 with expected increases of over 20% for state workers and as high as 30% for local governments.
Continue reading CWA Statement on State of NJ Budget
2025 CWA Local 1031 Scholarships
CWA Local 1031 is giving fourteen $500 Scholarships and three $500 Dependent Care Grants as a thank you to our members!
Winners will be selected at the August CWA Local 1031 Executive Board meeting to be held on Thursday, August 7, 2025. Awards are determined by luck of the draw, and winners will be contacted by email.
To apply, download and complete the form linked below, and return it to the CWA Local 1031 office by August 6th.
Remember, only members are eligible for these scholarships, but you can still fill out a card to become a member. Not only will you be eligible for the scholarship drawing, but you will also be supporting your coworkers as we fight for better wages, healthcare, and more! We are only able to provide these scholarships because of our members!
- www.cwa1031.org/join – sign a card today!