State Issues
SHBP Increases Approved
Earlier this week the State Health Benefits Commission adopted the rate increase as proposed in the AON Rate Renewal Report Local Government Employee/Retiree Group and State Employee/Retiree Group. Municipalities in the State Health Benefits Plan will see an overall rate increase of 22.8%.
The State’s health benefits plan will increase by 18.6%. However, based on a deal brokered between the State unions and the administration, State employees in the CWA Unity Plan and 2019 Direct Plan will only see a rate increase of 3%.
Prior to the State Health Benefits Commission meeting, the Plan Design Committee met to adopt resolutions, including a resolution increasing the co-pays for State employees for urgent care increased by $30 and specialists increased by $15. At that meeting, the public union representatives put forth the following resolutions to reduce the premiums:
Resolution 2022-7 to “End Contracts with Nonperforming or Underperforming Point Solutions.” Currently, the Division of Pensions contracts with more than 10 vendors to provide specialized services for topics such as weight loss or diabetes management. Often these services are billed either per member per month or on a fee- for-service basis. This resolution would direct the Division to drop any solutions operating at a loss or not providing the expected return on investment with the assistance of the Validation Institute or similar entity. The resolution would also direct the Division to identify and employ the services of a vendor with a documented history of effective education of members about health, healthcare, and health benefits.
Resolution 2022-8 “Direct OptumRx to Manage Medical Pharmacy Costs Billed From Medical Providers.” This resolution would immediately task the current Pharmacy Benefits Manager to manage specialty medicines dispensed by medical facilities and billed to through the medical portion of the coverage. This area is prone to price gouging, which can be curtailed with proper management.
Resolution 2022-9 “Directs PDC to Identify Broad-based Reference Based Methods to Achieve a Minimum of 10% Savings.” This resolution directs the Plan Design Committee to investigate and identify broad-based, reference-based pricing methods with the goal of 10% costs savings. The Plan Design Committee would also be tasked with creating a report for the full committee by December 1, 2022.
Resolution 2022-10 “Expand Access to First Responder Primary Care Medical Home Pilot by Adding Certain CWA and AFSCME Titles.” The direct primary care model promotes savings by reducing barriers to primary care doctors, which promotes early detection of disease as well as consistent health management. The First Responder Primary Care Medical Home pilot bills on a fee-for-service model at a set rate that promotes cost control. Expanding access by adding titles will encourage increased utilization of primary care physicians, which is expected to manage specialist utilization as well as downstream costs.
Resolution 2022-11 “Create a State Level Claims Stabilization Reserve Fund Similar to the CSR Used for Local Plans.” The Claims Stabilization Reserve (CSR) is a fund to hold approximately two months of anticipated local plan claims payments to ensure the ability to pay claims.
Unfortunately, the vote on the above resolutions were 6-6 with executive branch members voting no.
We suggest you review the rate increases with your professionals to determine the impact on your employees, your municipal budget, and property taxpayers. We will be holding webinars in the coming weeks to brief you on alternatives to the SHBP.
Contacts:
- Lori Buckelew, Deputy Executive Director & Director of Government Affairs, lbuckelew@njlm.org, 609-695-3481, x112.
- Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.
Lunch & Learn: Exploring Alternatives to the SHBP – How to Navigate within Existing Labor Contracts
As municipalities explore alternatives to the State Health Benefits Plan (SHBP) it is important to ensure that any new plan conforms to existing labor contracts and meets the “equal to or better” clause found in some labor contracts. On September 29 at 12:30 p.m. join Matt Watkins, the League’s Labor Consultant, and Kevin Lyons, NJ State PBA’s Legal Protection Plan Administrator and Health Benefits Coordinator, as they discuss how to navigate the alternatives to the SHBP within existing labor contracts.
Register for this must-attend Lunch & Learn if you are exploring alternatives to SHBP
Contact: Lori Buckelew, Deputy Executive Director & Director of Government Affairs, lbuckelew@njlm.org, 609-695-3481, x112.
NJDEP Public Comment Period and Virtual Hearing for Draft Tier A Permit Renewal and Tier B Reassignment
If your municipality is currently designated Tier B under the Municipal Separate Storm Sewer System (MS4) permit program, you are likely aware of the efforts by the NJ Department of Environmental Protection (NJDEP) to reassign your municipality to Tier A.
All municipalities, regardless of Tier designation, should be aware and interested in the NJDEP’s proposed renewal of the Tier A permit. The permit renewal proposal expands permit conditions, imposing new mandates and additional requirements on permit holders. More information on the proposed permit renewal can be found in the League’s recent blog post.
Part of the permit renewal process for the draft includes a public comment period, which ends on Tuesday, September 20. This is an opportunity for you to express directly to the NJDEP your concerns with the impacts the Tier A permit renewal will have on your municipality, whether you are currently designated Tier A or are a Tier B municipality being reassigned.
Written comments may be submitted to the NJDEP via email to stormwatermanager@dep.nj.gov. In addition, the NJDEP will be hosting a virtual public hearing to solicit public comment on September 20 from 9 a.m. to 12 p.m., and re-open from 1:00 p.m. to 4:00 p.m. to accommodate additional individuals if the attendance limitation for the 9:00 a.m. to 12:00 p.m. session is exceeded. A link to register or attend this hearing has not been provided by the NJDEP, but those interested in attending or providing comment are encouraged to contact NJDEP via email at stormwatermanager@dep.nj.gov.
If your municipality submits comments to the NJDEP, please forward a copy to Frank Marshall at FMarshall@njlm.org.
Contact: Frank Marshall, Esq., Associate General Counsel, fmarshall@njlm.org, 609-695-3481, x137.
League Testified on Affordable Housing
League Executive Director Mike Cerra was part of a panel that included Mayors Janice Mironov, Mayor of East Windsor and President of the NJ Conference of Mayors (NJCM); Reed Gusciora, Mayor of Trenton; and Adrian Mapp, Mayor of Plainfield, on behalf of the Urban Mayors Association, which offered testimony on affordable housing before the Assembly Housing Committee.
The League’s comments, which will be submitted to the committee as a joint statement with the NJCM, ask the Legislature and Administration to find solutions and tools to assist the State of New Jersey and local governments in meeting affordable housing needs based on sound planning principles and advancing a comprehensive statewide reasonable, achievable, and fully funded housing policy with an administrative process, as contemplated in the NJ Fair Housing Act. As mentioned, a joint NJLM/NJMC statement will follow, which will be posted on the League’s website after it is submitted to the Committee.
Contact: Mike Cerra, Executive Director, mcerra@njlm.org, 609-695-3481, x120.
Cannabis Regulatory Commission Issues Guidance on Workplace Impairment
The New Jersey Cannabis Regulatory Commission (CRC) has issued interim guidance for employers on steps they should take if they suspect an employee to be under the impairment of cannabis while performing work duties. The CRC has also develop a Reasonable Suspicion Observed Behavior Report to go along with the interim guidance.
Under state law, employees cannot be punished or subject to adverse actions by an employer solely due to the presence of cannabis in the employee's system. However, employers have a right to maintain a drug-free workplace, meaning they can prohibit an employee from using or being under the influence of cannabis while on the job.
The difficulty with enforcing the drug-free workplace is that signs of usage remain in the users’ systems for long periods after use. This results in tests showing cannabis usage but not necessarily indicating that the individual was consuming cannabis while on the job or is even still under the effects of cannabis.
The two-page guidance document is intended to serve as guidance until the CRC formulates and approves standards for Workplace Impairment Recognition Expert (WIRE) certification. The WIRE is an agent of the employer meant to act as an individual trained and certified to recognize impairment while on the job, enabling employers to better enforce drug-free workplace policies.
Contact: Frank Marshall, Esq., Associate General Counsel, fmarshall@njlm.org, 609-695-3481, x137.
A-2138 Revises Contractor Law, Adds Code Official to Board
On Thursday, by a unanimous vote, the Assembly Consumer Affairs Committee favorably reported A-2138, which the League supports. This bill revises various parts of the statutory law and repeals current law on the regulation of home improvement and home elevation contractors. It also establishes the New Jersey State Board of Home Improvement and Home Elevation Contractors as the regulating body of these contractors.
As revised in the Assembly Consumer Affairs Committee in June, the bill adds a licensed construction code official to the nine-member board. With this amendment, the League moved from opposing to supporting this legislation. The addition of the construction code official brings experience, training, and knowledge that will help with promulgating rules and regulations that affect officials on the ground.
The legislation awaits consideration in the full Assembly.
Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.
Governor Signs Emergency Management Coordinator Residency Expansion Law
Governor Murphy signed A-4373, which permits municipal emergency management coordinators to reside within a reasonable proximity to the municipality in which they are employed.
Prior to the enactment of this law, municipal emergency management coordinators were required to be a resident of the municipality in which they are employed, except for a municipality with a population less than 5,000 where if a qualified resident cannot be recruited, a nonresident who is a resident of the same county as the municipality is located.
The emergency management coordinator must reside near enough to the municipality to ensure a prompt response or coordination of municipal resources for any local incidences. This law takes effect immediately.
We suggest you review this information with your public safety personnel.
Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.
BPU & DCA to Conduct Study on Pandemic Impacts
On September 15, Governor Murphy signed A-3329 , which requires New Jersey’s Board of Public Utilities (BPU) with the consultation of the New Jersey Department of Community Affairs (DCA) to conduct a study and provide a written report to the governor and legislature on the effect of the pandemic on local and public utility service. Utilities to be studied include electricity, gas, heat, sewer, and water services.
The study is to report on the effect the pandemic had on demand for services and the ability of the utility service to meet these demands. The study is also to examine how the pandemic impacted customers’ ability to make payments for the utility service. All data collected from the study is to be posted on BPU’s website. Utilities are required to submit the required data to the BPU quarterly for the next two years. The first report is to be prepared within 30 months of the bill’s signing.
Contact: Andrew LaFevre, Legislative Analyst, alafevre@njlm.org, 609-695-3481, x116.
ANCHOR Property Tax Relief Instructions Mailed to Residents
Instructions for the Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) program were mailed to residents this past week. The ANCHOR program will provide $1,500 in relief to homeowners with incomes of up to $150,000; $1,000 for homeowners with incomes between $150-$250,000; and $450 for renters with incomes up to $150,000. To be eligible for this program, homeowners and renters must have their primary residency in New Jersey as of October 1, 2019.
Homeowners and renters who are eligible can apply by phone, or paper application which can be found on the Division of Taxation’s website. The deadline for applications is December 30, 2022.
Contact: Andrew LaFevre, Legislative Analyst, alafevre@njlm.org, 609-695-3481, x116.
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