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The deal, if approved, would eliminate some high-cost insurance plans and offer two new ones that both sides insist will offer similar coverage at a lower cost. Sweeney says the annual savings will be split 60% for the state to lower taxes, 40% for union members to lower premiums.
"We’re coming up with over a billion dollars in savings,” Sweeney told reporters at a news conference in Trenton. “Who would ever thunk it? This has been a long journey."
That journey is not quite over. The deal has to be put to paper. Still, NJEA President Marie Blistan believes this collaborative effort will ensure that her members won’t see take home pay shrink every year due to increases in premiums.
"With this agreement, every NJEA member who receives health insurance coverage through their employer will now have access to high-quality health insurance that allows them to rest easy knowing that they and their families are well covered," Blistan said.
The difference? Employee contributions will be based on a percentage of salary rather than a percentage of premiums. Those who like the old system will have options as well.
Proponents hope to get a bill through the Legislature and on Gov. Phil Murphy's desk as early as the end of this month. By Trenton standards, that's lighting fast.