Gov. Chris Christie must privatize health benefits

star ledger ^ | 04.14.10 | Brian Litten

[Coleus]

In his first few months in office, Gov. Chris Christie has proven he is no shrinking violet. Breaking new ground on everything from affordable housing to school funding, the governor has shown that he is not afraid to trot out big, bold ideas in an attempt to heal the long festering wound that has been infecting New Jersey’s fiscal health.

And so it is without trepidation or hesitation that I recommend yet another ambitious concept that not only can save us hundreds of millions of taxpayer dollars, but can improve the health of our state work force.

As a lawyer, lobbyist and insurance company executive, I have learned a thing or two about how the health industry, and the health insurance industry specifically, work. These lessons can be applied to work miracles for New Jersey’s taxpayers and for its workers as well.

Currently, the state provides health care coverage for its 800,000-plus public employees and retirees. The state is what is known in the industry as "self-funded." This means the state pays for medical claims out of its own funds, rather than contracting with an insurance company to take on the risk associated with the medical care costs of public employees. When public workers and retirees get sick, they go to the doctors’ offices, labs and hospitals, and the state pays the bills. The system is administered at additional significant costs by private vendors.

While this system has worked to afford adequate health benefits for public sector employees and retirees, it has failed miserably on three counts: First, it requires the state of New Jersey to set aside huge reserves — in the hundreds of millions of dollars — to pay claims and to protect itself against possible future increases in claims.

[AZFolks]

In every state there is going to be weeping and gnashing of teeth but all of the pension reforms, retirement health benefits will be rewritten. There will be much agony, accusations of racism, sexism and every other ism but it is clear to all, Americans have had enough. If the issues are properly handled, a steamroller is coming their way!

[truthguy]

In every state there is going to be weeping and gnashing of teeth but all of the pension reforms, retirement health benefits will be rewritten. There will be much agony, accusations of racism, sexism and every other ism but it is clear to all, Americans have had enough. If the issues are properly handled, a steamroller is coming their way!

My sentiments exactly. Government Workers should get the same 401K plans and savings plans just as the rest of us non-government workers. No more unfunded mandates from future generations. This madness must stop. Government Workers do get more job security but that should not enable them to retire in their early fifties as some have done with 90% of pay. This is outrageous and the public cannot afford this. I know it's not this way in every state but it is in New Jersey, New York and California. We just cannot afford this and we must come to grips with economic reality.

[gleneagle]

You could not be more correct. Most every state and large city has caved to the unions to the extent there is no way they can pay the promised benefits. Now that the Feds have shoved more of the medicaid back to the states, things will hit the fan earlier.

The unions will sue, of course, but somewhere a judge will become captain obvious and realize that if he (or she) upholds the union benefits, chaos will prevail. My guess is that court will rule the contracts were contracts of adhesion with the unions having all the bargaining power resulting in terms which violate public policy and are unenforceable.

[Leo Carpathian]

dissolve commie unions!