Discover the Latest Updates and Initiatives from Governor Phil Murphy: Your Go-To Resource

TRENTON – Governor Murphy, along with 17 public sector unions, recently announced a plan to save around $75 million in health benefits for Fiscal Year 2026. This is one of the biggest health plan updates in nearly 15 years.

“We are making sensible changes to the State’s health plans,” said Governor Murphy. “My aim is to ensure that future leaders have strong recommendations to navigate health care costs effectively.”

Key changes include new deductibles and co-pays across various plans:

• $110 in-network deductible for individuals and $220 for families.
• $750 out-of-network deductible for individuals and $1,500 for families.
• Out-of-pocket maximums set at $2,500 for individuals and $6,000 for families.
• New co-pays for different medications and lab visits.
• Encouragement to use in-network surgical centers for certain procedures.
• Limits on out-of-network physical therapy sessions.
• Expansion of a pilot program for Centers of Excellence.

The state is committed to collaborating with the unions on longer-term strategies for cost containment. These changes are set to be discussed in a meeting this month, with plans to implement them by January 1, 2026.

Nationwide, health care costs are rising, but New Jersey’s public employee plans have seen even higher annual rate increases. According to a recent analysis, state health benefit plans have grown by an average of 6% per year, outpacing national averages. This push for reform aims to address some of these rising costs.

In social media discussions, many state employees expressed concerns about how these changes may affect their health access. However, others welcomed the chance for greater cost transparency and better management of health care spending.

Overall, these reforms represent a proactive step towards managing public health costs in New Jersey while ensuring quality care for state employees and their families.

For more details, you can view the Memorandum of Agreement here.

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