HEALTH BENEFITS UPDATE
Cost savings, not more cost shifting
So, the man in Trenton( in concert with the legislature) wanted us to have more“ skin in the game” when it came to pensions and benefits. Well isn’ t it nice that while we are all still bleeding( financially and literally), now he wants more from us and not a dime from providers or third-party administrators?
The squabble over the $ 250 million in budget savings that he wants from the State Health Benefits Plan( SHBP) and the State Education Health Benefits Plan is once again supposed to come from the pockets of our members, and it is simply unacceptable. The labor side of the SHBP Design Committee has made a commitment to cost savings but we will not approve any more cost shifting.
In June, the Assembly held a hearing on A1952, which would
limit surprise billing on any emergency or in-network facility in New Jersey. Passage of this bill would be the first step in starting to control healthcare costs and not shifting them on to the consumers. This would save up to $ 217 million for just the state plan; if adopted for all out-of-network costs, it could save the taxpayers $ 1 billion in medical costs. But don’ t get too anxious; there are a lot of hands in the till, and they are reaching for your pockets.
I can’ t stress to our members enough to ask questions of your providers, whenever possible, before treatment. Are they in-network? If not, what will the balance on the bill be? Is there an effective, less expensive prescription alternative( or are they writing the prescription the drug companies want them to write)? We have to be healthcare consumers first.
The labor side of the committee also has introduced several concepts to actually save costs. The most graphic example is that of the Pharmacy Benefit Manager Contract. The state had three years to design the contract, solicit bids and reward an RFP that was projected to save $ 200 million – all without affecting our members’ benefits; but the state was not able to solicit more than three bids at the last minute, of which none were deemed responsive. Now think about this: The state left $ 200 million on the table for at least the next two years.
Another point that everyone in Trenton forgets is that, by working together, the Design Committee has produced more than $ 500 million in savings by changing the way things are done.
There are several other items for discussion as our discussions progress. I have forwarded a copy of the letter that the six labor representatives sent to the Assembly and Senate to all presidents and delegates.
One thing that Trenton forgets is that since we are paying 35 percent of our healthcare costs, we want to keep costs down as cost increases directly affect rates. We are continuing good faith discussions with the management side, and are hoping to come to some sort of resolution in the upcoming weeks, but it’ s time for some of the governor’ s“ shared sacrifice” to trickle down to the state’ s bloated healthcare system. Until brokers, hospitals, providers, insurers and pharmacy benefit managers start putting their“ skin in the game,” they’ re not getting any more of our blood. d
16 NEW JERSEY COPS ■ AUGUST 2016