Public
sector retirees protest
Governor's plan for a health care
costs increase spurs second Trenton rally.
Thursday, July 21, 2005 • By TERRENCE DOPP •
The Express-Times
TRENTON -- About 500 retired teachers and
government workers braved scorching heat Wednesday to rally
against acting Gov. Richard Codey's plan to raise health
care co-payments for retired public employees.
Protesters gathered at the Trenton War
Memorial as members of the state Health Benefits Commission
gathered inside for a public hearing on a plan to scale back
some retirement benefits.
Codey and other state officials contend
the spiraling costs of health care and swelling retiree
rosters are breaking the bank.
The protest was dominated by retired
members of the New Jersey Education Association, the
statewide teachers union, and included members of the
Communications Workers of America and AFL-CIO.
"Our pensions and our benefits are part
of our earned compensation, not hand-outs or government
giveaways," said Edith Fulton, president of the New Jersey
Education Association. "If we don't stand up for ourselves,
no one will."
Carrying signs calling for state
officials to abandon any hike in co-pays, the retirees wore
hats that said "hands off my benefits."
The protest was the second this year. The
previous one was in May.
The state contends the benefits program
needs to be pared down because some retirees are opting for
name-brand medications instead of generic drugs. That means
they reach the $552 dollar cap sooner and the state ends up
paying more.
State-covered health plans have fallen
under scrutiny lately because of skyrocketing costs and
annual budget deficits.
More than 103,000 former state employees
and teachers who retired with at least 25 years of service
enjoy low-cost or free health care coverage under those
plans. The cost to the state: $1 billion in the 12-month
budget year that began July 1. Prescription drug benefits
for retirees represent 42 percent of the cost.
By 2010, the tab for retiree health
benefits is projected to more than double, according to
state officials.
"New Jersey is one of only four states in
the nation to have an out-of-pocket cap. And New Jersey's is
the lowest of those that do offer it," said Tom Vincz, a
spokesman for state Treasurer John McCormac. "Our focus is
on preserving the program in the long term."
Ron Whitestone, 67, a retired Department
of Transportation employee from Stewartsville, estimated the
proposed increase could cost him $1,500 each
year.
Whitestone said he currently takes four
prescription drugs and his wife, who suffers from leukemia
and diabetes, relies on nine. His wife has already reached
the $552 cap less than seven months into the
year.
"It sounds like we're crybabies and we're
sniveling. But we never made much money and this was a
promise to us," said Whitestone, who in 2003 took an early
retirement package after 35 years issuing high-access
permits for the DOT.
"It's like getting a reduction in your
pension," he added.
Dudley Burdge, senior staff
representative for CWA, said union leaders want to see
greater reliance on generic drugs for state prescription
plans and bulk purchasing to negotiate better prices for
state health plans.
"Pharmaceutical companies have tremendous
power," Burdge said. "Instead of looking at what is a
national problem (the health panel) wants to just sock it to
the retirees."
In all, there are now about 600,000
active employees and another 103,000 public sector retirees,
according to NJEA officials.
To qualify for full pension benefits,
including lifetime medical coverage, workers must clock 25
years in a government position.
Terrence Dopp is Trenton correspondent for The
Express-Times. He can be reached at 609-292-5154 or by
e-mail at tdopp@sjnewsco.com. The Associated Press
contributed to this article.
© 2005 The Express-Times. Used with
permission.
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