Concerns disclosure and reimbursement procedures of board of education and municipal employee health care benefit contracts.
NJEA supports S-3086 (Sarlo). This bill would ensure that any money received by a school district or municipality in the form of a reimbursement, refund, rebate or other credit from its health insurance premiums would be used to lower the cost of health insurance. It would also require transparency for health insurance costs, requiring districts and municipalities to publicly disclose both these reimbursements and the amounts they pay for health insurance premiums.
School employees are now required to pay a share of the cost of their health insurance premiums. Although districts may receive rebates from health insurance companies, there is no requirement that this money be used toward future costs of health benefits.
It is only fair that if law mandates that employees pay part of the cost of their health benefits, any refund a district receives be reserved to offset that cost in the future. Using this money for other purposes would be tantamount to imposing a tax on employees.
This bill would ensure that payment for health benefits is fair and equitable. NJEA asks you to vote yes on S-3086.