The bill amends Section 6 of P.L.1996, c.8 to permit State employees who lack collective negotiations agreements to enroll in specific Preferred Provider Organization (PPO) plans, namely CWA Unity DIRECT or CWA Unity DIRECT2019, starting January 1, 2027. This amendment aims to clarify the payment obligations of these employees regarding health benefits, aligning them with the terms of the selected PPO plans based on their date of hire. Furthermore, the bill modifies existing provisions related to health benefits for State employees and retirees, ensuring that those with 25 years of nonconcurrent service credit receive full premium coverage upon retirement and establishing contribution requirements for both active employees and retirees.

Additionally, the bill maintains current provisions for various health services, including outpatient and hospital services, while establishing co-payment structures and reimbursement rates for in-network and out-of-network services. It emphasizes that the rates for contracts purchased under this act must reflect the cost of benefits provided and be actuarially sound, prohibiting retroactive rate increases. Overall, the legislation seeks to improve health care access for unrepresented State employees and ensure consistency in contributions and benefits.

Statutes affected:
Introduced: 52:14-17.28, 52:14-17.29