b'ComplianceLEGAL NUTRITIONCouncilANJC Leadership ANJC Leadership LEGAL EASE NUTRITION REHAB Council Executive Directors UPDATE LEGAL Q&A CHIROASSISTGovernors Legislative UpdateINSURANCE Update INSURANCE UpdateFiscal 2020 Budget By Jon BombardieriTECHNIQUE CouncilANJC Government Affairs CounselOn March 5th, Gov. Phil Murphy gaveretired educators choose Medicareservice in network; and his Budget Address for the fiscal yearAdvantage plans, and another $115 $7.9 million from an audit of the 2020 state budget. Gov. Murphy ismillion through tighter controls on prescription services.MedicareQ&Aprescription and medical claims. The legislature will hold budget offering lawmakers a more balanced approach for fiscal year 2020. A $38.6The governor is also relying upon $217hearings beginning in April to discussOUR HEALTHbillion budget plan he unveiled recentlymillion in reductions to be identified includes new revenue from a million- through ongoing discussions withthe governors proposal and to put aires tax but also savings initiativesthe states Plan Design Committee,forth their own proposals. Under the worth more than $1 billion. comprised of administration expertsstate constitution, the budget must be The combination of new tax revenueand labor leaders who have beenpassed and signed by the governor by and money freed up through savingsworking on identifying additionalJune 30th or risk shutting down state proposals, which includes departmentalsavings. government.belt-tightening and changes to publicDuring his first year in office, Gov. employee health coverage, wouldMurphy targeted benefit reform, allow the state to cover several notablewhich included pension and medical spending increases that Murphy isplan reforms that appear to account recommending for fiscal 2020. Thosefor the lower spending projections he increases include $206 million in newannounced during his budget address.direct aid for K-12 education and $25These savings are reflected in the million in new funding for New Jerseyspending proposals for health Transit. coverage, in particular. Overall, the The governor is also calling for a recordgovernors new spending plan includes state payment into the public-worker$2.7 billion to cover benefits for active pension system of nearly $4 billion andand retired state, county and school is seeking to increase the states rainyemployees; this is roughly 7 percent of day surplus to over $1 billion for thethe total $38.6 billion budget proposal. first time in roughly a decade. Thats down from the $3.3 billion In comparison to Gov. Murphys firstthe state is expected to spend in the budget enacted last July, spendingcurrent budget year on these services.would increase by a little over a $1Some of the anticipated savings willPaid Family Leavebillion based on the spending plan hedepend on additional changes by theOn February 19th, Gov. Murphy signed unveiled. Much of the increase, nearlyPlan Design Committee, which willinto law, A-3975 (Quijano/Ruiz), an $600 million, would go into the pensionhave to be made by new legislation,expansion to the states paid family system, pushing the contribution frombut many of the spending reductionsleave program. This was an expansion $3.2 billion up to $3.8 billion in fiscalare already bound to changes alreadyof the original paid leave program year 2020. made to public worker benefits, whichenacted in 2008. The new law expands The governors budget allocatesinclude: the program to provide additional jobanother $2.7 billion for public-worker $9.6 million as a result of limits toprotections for those who miss work healthcare coverage, which is aout-of-network charges; due to caring for a newborn child or decrease of about $500 million $61 million from an audit to ensuresick loved one. compared with what the state iscovered dependents are eligible; The legislation increases availability currently spending this year. The total $9.4 million from an audit to ensurefor family members that program savings from the healthcare initiatives, employees who are eligible forparticipants can care for to include which include auditing plan enrolleesMedicare benefits are using them; siblings, grandparents, grandchildren, and shifting retirees into less costlyparents-in-law, and others related by Medicare plans, would amount to $11.9 million from renegotiating blood or relationship equivalent to a nearly $900 million.services with the insurance compa- family relationship. It allows for leave to Specifically, state officials anticipatenies that cover public workers; be taken to care for a family member cutting $196 million in costs by assuring $12.5 million from shifting certain labwho has been a victim of an incident8 I Spring2019 www.anjc.info'