Trenton, N.J. – Thousands of public sector and State workers gathered at the New Jersey State House Annex June 4, 2025 to deliver a message to state lawmakers to put a stop to skyrocketing healthcare costs for New Jersey’s public sector workforce.
Since 2022, healthcare premiums for State workers have increased by 40% while local government workers have seen a 59% compounded increase. The premium increases are putting a huge strain on workers and on the healthcare system itself and are a key driver of the affordability crisis in New Jersey. A typical local government employee earning $65,000 is currently paying over $8,000 for a family plan. With the most recent increases in premiums, that same employee is paying almost $9,500 for that same plan in 2025, effectively eliminating any negotiated salary increase.
A coalition of labor unions, including the Communications Workers of America (CWA), the New Jersey State AFL-CIO, AFSCME NJ, AAUP-AFT, AFT New Jersey, the Council of New Jersey State Colleges, URA-AFT, HPAE, IFPTE, and others, is fighting for legislation to make healthcare more affordable, require fair pricing for healthcare services, and improve the governance and transparency of the State healthcare plan.
“New Jersey’s public sector workers keep our state running every single day, and they should not be punished with unaffordable healthcare costs,” said Dennis Trainor, CWA District 1 Vice President. “It’s time for lawmakers to take real action to rein in healthcare profiteering and deliver the affordability, transparency, and accountability that public workers—and all New Jerseyans—deserve.”
Public sector union workers are fighting for common-sense cost control and solutions like claims auditing, enforcing existing contracts with insurance carriers, and fair pricing that would rein in the costs of care overall, generating enormous savings for the State, local governments, and workers.
“What’s not to like about this proposal?” asked New Jersey State AFL-CIO President Charles Wowkanech. “It has produced massive savings in other states and could save New Jersey taxpayers $1.1 billion annually. It helps to control ever-increasing property taxes by slowing down out-of-control increases in health insurance premiums for public employees. It provides much-needed relief to workers who, during a time of historic inflation, are seeing every penny of their raises get eaten up by double-digit increases in health insurance premiums. Considering the dire condition of the State Health Benefits Plan, I urge the legislature to pass this bill now,” he concluded.
“The ever-increasing healthcare costs have devastating financial and emotional effects for our members in the State Benefits Health Program. New Jersey’s working families deserve better. Reference-based pricing in healthcare will provide a fair-market standard that ensures transparency, cost reduction, affordability, and quality healthcare,” said Susanna Tardi, Ph.D., the Executive Vice President of Higher Education, AFTNJ.
“The State needs to embrace the common-sense reforms that public sector unions have been offering for years,” said Steve Tully, AFSCME NJ Executive Director. “These reforms will ensure the long-term stability of the State Health Benefits Plan while making healthcare more affordable for workers and the taxpayers.”
