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Media Advisory

July 14, 2010

Health Care Costs Mandates Demonstrate Need for Immediate Reform

Today, July 14, 2010, the State Health Benefits Commission received the report from AON Consulting detailing the rate renewals for 2011.  The recommended increases in premium rates were 11.7% for local governments.

New Jersey State League of Municipalities Executive Director Bill Dressel issued the following statement:

“This is yet another example of why the Legislature and Administration must make the toolkit reforms their top priority.  Up against a hard 2% cap with an empty toolkit, towns will not be able to control costs.  Unless the Legislature and Administration act immediately to make these reforms, towns will make draconian cuts in staffing and services.  These premium rate increases represent yet another mandate upon our towns and cities; another mandate over which they have no control.

“While these costs won’t count against the new cap, they still represent one of many increasing costs for local governments.  For years local leaders have called for reform, including binding arbitration reform, COAH reform, health benefits reform, mandates relief, civil service reform, flexibility to deal with pension costs, utility costs, disaster and emergency response costs and other costs imposed by factors beyond the control of local leaders, and conformity of any new local caps to a new State spending cap.

“True tax reform is not done until municipalities have the means to control costs.”

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For further information contact: William G. Dressel, Jr., Executive Director at (609)695-3481, extension 122 or 609-915-9072.




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