Catastrophic options won’t save much, could be risky
The open enrollment period for the State Health Benefits Program (SHBP) has officially opened (Oct. 17) and changes in health insurance coverage can be submitted until through November 11. New health insurance options are available, but none will save workers money employed prior to June legislation this year as first year contributions will not be higher than the current 1.5% of salary. However workers who switch to less comprehensive plans risk paying significantly more in deductibles and co-pays.
“The revised Employee contribution schedule that went into effect on July 1, 2011 will have little impact on Employee enrollment for the first year, since the current 1.5% of salary floor will exceed contributions generated by the new schedule for all Employees in the first year of the new schedule.”
(from http://www.state.nj.us/treasury/pensions/pdf/hb/rate-renewal-state-2012.pdf)
This means you should probably stay in a comprehensive plan, as switching will not save money.
Online rate calculation tool
Plug in your level of coverage and salary at http://www.state.nj.us/treasury/pensions/hb-percentage-monthly1.shtml to see the difference between first year rates and 1.5% of salary. You pay whichever figure is higher, but under most scenarios, the 1.5% is higher than the first year contributions. As of this writing (10/19/11) these are based on calendar year 2011 rates so they are not exact, but will give you a reasonable estimate.
Contribution levels rise next three years
As June’s legislation is phased in over four years, workers may face hard choices next year and in each subsequent year. However, for this year, there is much more to be lost by switch to a cheaper plan than could be saved.
New hires stuck at highest rates
Unfortunately, those hired after implementation of the health insurance legislation on June 28 will start off at the highest payment rate. As the new rates are announced, more information can be provided to help new workers make what may be difficult decisions about which plan to choose. The online calculator for those hired after June 28 is online at http://www.state.nj.us/treasury/pensions/hb-percentage-ed.shtml.