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| Date: | July 2, 2007 |
| To: | All Employees Eligible for Health Benefits |
| From: | Sandra L. Russell |
| Subject: | Changes to the State Health Benefits Program |
Legislation was recently enacted concerning changes in the contribution level for employees participating in the Public Employees’ Retirement System (PERS) and implementing certain changes to the State Health Benefits Program (SHBP). Effective July 1, 2007, employees participating in PERS will be required to contribute 5.5% of their annual salary to the system. Also effective July 1, 2007, there will be employee contributions to health benefits costs by way of salary withholding that are not linked to the type or level of coverage. The standard employee contribution set forth in the law for an employee enrolled in the SHBP for medical and/or prescription coverage is 1.5% of his or her annual salary. Further, the law will result in other SHBP changes. Changes that have been agreed to by the State and its employee groups will increase primary doctor and specialist doctor visit copay amounts for those employees participating in the New Jersey Plus program or an HMO to $15. The emergency room visit copay will increase to $50, which is waived if the employee is admitted to the hospital. There are additional changes to the prescription copay program which creates a third tier of copayments of $25 for brand name drugs where a generic drug equivalent is available for a 30 day supply purchased at a retail pharmacy.
Employees will be permitted to waive their SHBP medical and prescription coverage to avoid having contributions withheld from salary provided they can demonstrate that they have other health care coverage. The waiver form is available on our website. Note that a new health application must also be completed if you are waiving coverage.
