Few NJ State Employees Switching To Cheaper Health Care Plans

By David Madden

TRENTON, NJ (CBS) - In the almost six months since New Jersey began charging state and local government workers more for health care benefits, it turns out few have availed themselves of less expensive alternatives made available to them.

Of the more than 397,000 eligible employees, only 309 of them switched to a new health plan. And of that number, only 15 chose the highest deductable within a new plan as a way to cut out-of-pocket premium costs.

That's no surprise to state officials, mind you. "The financial incentives aren't there yet for people to adopt lower cost plans," says Andrew Pratt, a spokesman for the Treasury Department.
Then again, the changes are being phased in. "Over a four-year phase-in of the increase in their premium costs, we expect to see more people sign up for other types of plans that provide them with significant savings."

By then, workers will be expected to kick in an average 20% of the cost of their health care. Officials predict, as required contributions rise, more will opt to change plans, saving state and local governments more than $3-billion over the next decade.