Some members are understandably concerned following reports of a 15% premium increase for the SEHBP. Don’t worry: if you retired with 25+ years of service and receive fully or partially paid SEHBP coverage, the premium change will NOT affect you. Your payment, if any, will remain the same.
That happened because NJREA and NJEA fought for a law to protect you from devastating increases in health care costs. That law, Ch. 44, was signed in 2020. Before Ch. 44, retired members who contributed to their benefits paid a percentage of the SEHBP premium, which usually meant a larger payment each year. Now if you contribute anything, it is a percentage of your pension, so premium changes do not increase your costs.
Retirees using Medicare are not affected by SEHBP rates. Overall, Medicare rates are expected to decline slightly next year, though individual plans will vary. Most Medicare retirees do not contribute. If you do, look for an article in December to learn how to choose the best plan for you.
With inflation rising, every dollar counts. That’s why it matters that members are protected from this increase in health insurance costs. We work hard every day so that the benefits you earned are strong, secure and affordable. After a career of public service, you deserve nothing less.
Pull quote: The SEHPB premium increase will NOT affect you