Hillsborough Urges State Action On Rising Public Worker Health Premiums

HILLSBOROUGH, NJ — The Hillsborough Township Committee approved a resolution urging state leaders to make changes aimed at slowing what it called unsustainable increases in health benefit premiums for public sector employees.

The vote was not unanimous, with Mayor Catherine Payne, Deputy Mayor Shawn Lipani, and Committeeman Robert Britting voting in favor, while Committeewoman Samantha Hand voted against it. Committeewoman Jill Gomez was not at the meeting.

The resolution says all State Health Benefits Program plans are self-funded and states that the rate increase for the 2026 Local Government Employer Group is 36.25 percent.

It also says that the increase does not include fully funding the loan to the SHBP Local Government Group under c. 86 or bringing the Claims Stabilization Reserve to the required two-month balance.

According to the resolution, nearly 200 local government employers have exited the SHBP since the end of 2020, representing a nearly 30 percent decline.

The document also cites budget testimony in which State Treasurer Binder noted that, while Treasury did not have final numbers, "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."

During committee discussion, Hand questioned the measure and said, "This seemed, you know, more like political theater. Can you speak a little to this one?"

Payne said the New Jersey State League of Municipalities had shared the resolution for adoption to all mayors in the state to adopt based on the league's guidance.

"The League of Municipalities, every municipality reports into them essentially, and this was one that they selected to help us try and fight some of the health increases that are going on," said Payne.

Hand responded, "Again, it seems interesting because this is all part of like collective bargaining. So, very, very interesting approach."

Lipani said the issue goes beyond party politics and local contract talks.

"Well, I'll say it's not really collective bargaining. This affects all towns. It's not a Republican, Democrat thing. Every municipality is fighting increased health care costs, which create undue burdens on the municipalities and they've gone unchecked for years," said Lipani.

The resolution says state leaders should consider long-term structural reforms, including eliminating costly plan designs, modifying some co-pays, restricting out-of-network coverage and GLP-1 drugs, implementing Reference Based Pricing, streamlining Health Savings Accounts and Flexible Spending Accounts, and improving medical transparency and data collection.

It also says failure to make those changes could leave local officials considering hiring freezes, eliminating budgeted vacancies and increasing taxes.

A copy is to be sent to Gov. Sherrill, Treasurer Binder, Senate President Scutari, Assembly Speaker Coughlin, Sen. Zwicker, Assemblyman Freyman, and the New Jersey State League of Municipalities

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