Unions
protest proposal to cut health benefits
Thursday, July 21, 2005 • BY
DUNSTAN McNICHOL • Star-Ledger
Staff
New Jersey's largest public employee
unions staged a show of force in Trenton yesterday to
protest a proposal to reduce the prescription drug benefit
package for some retirees covered by the state-funded health
benefits plan.
"Unless we stand up right now, this will
not be the last attack on our benefits," Fred Aug, head of
the New Jersey Retired Educators Association, told a
lunchtime rally outside the Trenton War Memorial building,
where the rule change was being discussed.
At issue was a plan to eliminate a $552
annual limit on how much retired employees must make in
co-payments for prescription drugs. About 50,000 of the
189,386 retirees covered by the state's Health Benefits Plan
reach the cap each year, state records show.
State officials say the plan will save
about $26 million a year for the plan and encourage the
system's heaviest users of prescription drugs to make
greater use of lower-cost generic drugs and mail-order
options.
But union leaders say the proposal
targets the elderly and chronically ill, and could "open the
floodgates" to more benefit cuts.
"I'm offended that anyone thinks they
have the right to take away something we have earned over
years of public service," said Edithe Fulton, president of
the New Jersey Education Association, the state teachers
union.
Yesterday's rally, which drew about 400
union members, coincided with a meeting of the five-member
State Health Benefits Commission to take testimony on the
plan to eliminate the co-payment limits.
The rally was also designed as a
pre-emptive strike against lawmakers, who are coming under
increasing pressure to rein in the costs of state worker
benefits. Acting Gov. Richard Codey singled out benefits
costs during his annual budget address earlier this
year.
Public employee pension and health
benefits account for $2.3billion of the current $28billion
state budget, but are on track to cost about $6.7billion
within four years, state pension director Fred Beaver told
lawmakers in March.
Union members yesterday wore caps,
T-shirts and badges proclaiming, "Hands off my
benefits."
"This thing opens the floodgates," said
Charles Wowkanech, head of the New Jersey
AFL-CIO.
Jon Corzine, the Democratic candidate for
governor, issued a statement supporting the rally and saying
the state must negotiate efficiencies in the benefits
program with workers. Republican candidate Doug Forrester
did not take a position on the proposal, but said through a
spokeswoman the state must explore a range of strategies for
reducing the cost of health coverage.
© 2005 The Star-Ledger. Used by NJ.com with
permission.
|