How to Cut Health Care Costs for Schools and Towns

To the Editor: The Retrospect has done a good job covering the exorbitant increases in health care premiums that are forcing all local towns and school boards to refigure how to make ends meet. Local entities are spending 25-30% of their budget on health benefits for their employees, with annual increases in the 15-20% range.

This is unsustainable, forcing cuts to essential local services and programming.

Most health care activists understand that the real savings in health care will come from removing private insurance and replacing it with an expanded and improved public program.

A recent Yale study confirms that private insurance and health care management, plus excessive drug prices, now account for about 20% of all health care spending, a whopping $1 trillion per year nationwide.

The NJ Universal Healthcare Coalition (NJUHC) advocates for Medicare for All at both the federal and state levels (www.njuhc.org). Support for expanding and improving federal Medicare to cover every U.S. resident is growing but will not advance until we have a new administration in Washington.

There is an immediate step in the right direction that New Jersey can take - removing the private Managed Care Organizations that administer Medicaid in New Jersey.

According to Physicians for a National Health Program, it would save the state anywhere from $650 million to over $1 billion per year, savings that could be used to help cover the cost of public employee health care. Connecticut de-privatized its Medicaid 14 years ago with significant positive outcomes.

Several states have legislation pending to serve as models. Since states control how Medicaid is managed, no federal approval is necessary. NJUHC is looking for Assembly and Senate sponsors for such legislation.

Once the political environment in DC changes, New Jersey could pass legislation already before the Assembly and Senate (A4445/S426) that would provide traditional Medicare as every New Jersey resident's primary insurance, regardless of age or employment status. This would significantly reduce what local and state governments spend on health benefits. We thank local NJ-5 Assemblyman Bill Spearman for co-sponsoring this legislation.

Tom Knoche, Secretary, NJUHC Haddon Township

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