Bernards Urges State Action On 'Unsustainable' Rising Health Benefits Costs

BASKING RIDGE, NJ — Bernards Township is urging state leaders to overhaul the State Health Benefits Program(SHBP) after local officials pointed to "unsustainable" steep premium increases.

On May 12, the Township Committee approved a resolution calling for "fair and equitable reforms to mitigate the unsustainable increases in health benefit premiums for public sector employees."

The resolution cites a 36.25 percent rate increase for the 2026 Local Government Employer Group.

It also notes earlier increases of 16.4 percent for plan year 2025, 7.4 percent for 2023, and 20 percent for 2022.

Under state law, the SHBP provides medical, prescription drug, and dental coverage to qualified state and participating local government employees, retirees and eligible dependents, and the plans are self-funded.

Mayor Ana Duarte McCarthy said that as of March, "560 local government entities remain in the plan, down from 700 as of four years ago."

This is nearly a 30 percent decline.

The resolution also references budget testimony by State Treasurer Binder, stating that "based on the plan actuary’s midyear reports and SHBP Local Government fund levels, it is possible that rate increases could be as high as the rate increases we experienced last year."

McCarthy said Bernards and other municipalities have been working with other stakeholders to seek changes.

"The League of Municipalities that Bernards Township participates in supports reforms to the state health benefits plan to lower the year-over-year increases, stop the losses that the state health benefits plan has seen over the years, and remain committed to working with stakeholders on reasonable and long-term reforms," she said.

Committeeman Andrew McNally said, "I'm pleased that we're doing this. It helps raise our voice and along with all the other municipalities and other local government units that are facing the same kind of challenges."

He added, "There's universal agreement that this thing ain't working and we need to do something to fix it."

The resolution says failure to make long-term reforms could leave local officials weighing hiring freezes, eliminating budgeted vacancies, and increasing taxes.

Bernards will forward the resolution to Gov. Mikie Sherrill, Treasurer Binder, Senate President Scutari, Assembly Speaker Coughlin, Sen. Bramnick, Assemblyman Kearney, Assemblyman Macurdy and the New Jersey State League of Municipalities.

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