Crowd assails proposed changes to state health plan

A standing-room-only crowd of public employees, union leaders and pharmacists turned out in Trenton yesterday to object to proposed changes in drug and medical benefits for nearly 358,000 local and state government workers, teachers and retirees, plus their dependents.

The state Health Benefits Commission called the hearing, which lasted three hours, to consider proposals for higher co-pays for municipal workers and more use of generic drugs and mail-order pharmacies by all participants in the public worker health plan.

The state Division of Pensions and Benefits proposed the changes to save money and create uniformity in the State Health Benefits Program. It predicts the changes would save the state and local governments about $74 million in a program expected to cost $4 billion overall this year.

Eric Richard, a commission member and the New Jersey AFL-CIO legislative affairs coordinator, was among a string of labor activists who questioned the state's plans.

"Many things on the table today should be discussed at the bargaining table," Richard said. "I could say some of this is an unfair labor move."

So many people attempted to enter the Pensions and Benefits Division's meeting room that state security guards, faced with fire code rules, could only allow late-comers to enter as others left.

The commission did not vote yesterday, but must decide in time for changes to take effect Jan. 1.

"We are in a situation where rates must be in place by Jan. 1 with good lead time," said Joseph Reilly, commission chairman and assistant director of the Division of Pensions and Benefits. "We are kind of under a forced schedule." He said no date has been set to vote on the proposals.

Under the division's proposals, local public employees, teachers and retirees who participate in the plan -- 210,786 people -- would see the $5 co-pay for doctors office visits rise to $10, and a $5 co-payment on brand-name drugs rise to as much as $15.

Currently, employees in 309 cities and towns, 246 school districts as well as most county governments take part in the plan. Since January, 40 school districts have dropped out in favor of what their officials saw as better private plans.

All active state and local government employees and retirees in the program -- a total of about 357,930 people -- would be required to purchase generic rather than brand-name prescriptions in most cases, or pay the difference themselves, and would have to use mail-order prescription services after two refills at a drug store. Special provisions would be made for people who need prescriptions for critical health problems.

Married couples who are both covered under the plan would lose duplicate coverage. That proposal was criticized by union leaders as a marriage penalty.

Joyce Powell, president of the New Jersey Education Association, the influential state teachers union with 196,000 active and retired members, said existing labor contracts that run beyond Jan. 1 cannot be immediately affected by the co-pay increases or prescription changes. If the commission tries to impose changes outside of contract negotiations, she told the commission, "I believe you are going to force litigation throughout the state."

William G. Dressel Jr., director of the New Jersey State League of Municipalities, was the only person to testify in favor of the co-pay increases.

"Local governments are facing a health care spending crisis that causes a significant burden on local property taxes," Dressel said. "Everything must be on the table if we are to effect the structural changes necessary for property tax reform."

Pharmacists and union leaders said the plan calling for mandatory mail-order drugs would deprive Health Benefits Program members of the personal advice of their local druggist and risk delays in the arrival of important prescriptions. They also maintained it would harm the business of New Jersey's 1,800 pharmacies, which employ over 95,700 people, including 3,600 pharmacists, and pay $830 million in taxes annually.

Carlo A. Benedetti, an independent Trenton pharmacist, said people with mail-order prescription plans often turn to him when their drugs are delayed in the mail or by the weather. "I personally delivered a prescription to such a customer on the way home last night," he said. "Don't cut the local pharmacist out of the process. Let's talk and see what can be worked out."

Tom Hester covers state government. He may be reached at thester@starledger.com or (609) 292-0557.