Murphy: NJ taxpayers will save millions with changes to public workers' health benefits

The Murphy administration is expecting to save nearly $500 million in the next two years by steering employees and retirees to in-network doctors and generic drugs, the result of a pact between the Democratic governor and unions.

In a state with a high tax burden and growing costs for employee health care and pensions, the anticipated savings reaffirm Gov. Phil Murphy's more collegial approach toward unions since he began campaigning for office three years ago, aides to the first-term governor said. The new health plans are to cover more than 800,000 current and retired state and local government employees — nearly 1 in 10 New Jerseyans.

Murphy's administration touted the changes to employee health care — which were approved by a joint union-management panel in Trenton on Monday morning — as a win-win for employees and taxpayers at large. Health care premiums for the state's teachers are expected to decrease 1 percent next year, after a 13 percent increase this year, while prescription co-pays will decrease even more, the governor's aides said.

“As I’ve said from Day One, I believe in the power of collective bargaining and negotiating in good faith with our workforce," Murphy said in a statement. "Today’s agreement is a testament that this approach works — for the state of New Jersey, for workers, and for our taxpayers."

Read more: https://www.northjersey.com/story/news/new-jersey/2018/09/17/health-care-changes-public-works-could-save-millions-nj/1331530002/