Assemblyman Inganamort renews call to collect health plan debts as commission delays vote on rate hikes

NEW JERSEY — Assemblyman Michael Inganamort is renewing his call for the state to collect more than $50 million in delinquent payments to state-run health benefit programs after a commission failed Wednesday to reach an agreement on proposed double-digit rate increases for school employee health plans.

The School Employees’ Health Benefits Commission postponed its next vote until Sept. 3 after commissioners were unable to reach a consensus on the proposed increases, according to Inganamort, R-Morris.

“Half of the commissioners today fully understood that back-to-back health premium increases of 30% or more is simply unsustainable for school districts, their employees and taxpayers, but what is especially troubling is that there seems to be no work towards a solution and state-run plans have yet to collect more than $50 million in delinquent payments,” Inganamort said.

Last month, Inganamort requested information from the state Division of Pensions and Benefits that showed 13 school districts owed $22.3 million to the School Employees’ Health Benefits Program, while 35 local government entities owed $28.1 million to the State Health Benefits Program.

Together, the outstanding balances total about $50.4 million.

Inganamort also sent a letter to state Treasurer Aaron Binder asking the Department of the Treasury to provide a plan and timeline for collecting the outstanding balances.

“Employers who stay in the state-run health plans pay the price for the administration’s debt collection procrastination. It is the fiduciary duty of this administration to pursue the balances,” Inganamort said. “Even if the millions owed to the state would only decrease premiums slightly, it would be a welcome change to the costly proposals being considered again and again.”

The commission is scheduled to take up the proposed health plan rates again Sept. 3.