The City of Paterson is looking at the possibility of ending its longstanding practice of using self-insurance for employee medical coverage and switching to New Jersey’s State Health Benefits program, as reported in Northjersey.com. By doing so, Paterson believes that it would save approximately 20 million dollars given that its cost for employee medical coverage in 2020 is estimated at 67 million, compared to 44 million under the state plan. Paterson’s current cost for health insurance is 50.5 million for 2018. A report that was presented to the City Council projected the expense for medical coverage would reach $96 million by 2025 if the City were to remain self insured.

The City Council is scheduled to vote on the proposed change next week, and if approved, the switch would be effective on January 1, 2019. This change would affect more than 2,000 employees and retirees.

The switch to the sate benefit health plan had been discussed previously, but never came to fruition as Paterson needed the consent of more than 15 employee labor unions to affect the change. However as reported, labor unions have reached agreements on health care insurance which were adopted in their contracts that will allow the switch to take place.  This fact has not been confirmed by an independent source at this time.

The City has further stated that the city’s savings will result in decreased payroll deductions for city workers. Furthermore, Michael Jackson, president of the union that represents supervisors in the public works department, said the administration has assured employees that coverage under the state health system would be on the same level as what they received under the self-insurance plan. “If it’s going to save what they say it’s going to save, then it’s well worth it,” said Jackson.

We will continue to follow this story as it develops.  It will be particularly interesting to see if the City is able to deliver the same level of benefits and healthcare under the State Plan as it does under its own self insured plan.

Tags: benefit reform, collective bargaining, Contract Negotiations, health benefits, health care, healthcare reform, NJ Public Employees, NJ Public Safety Employees, NJ Public Safety Officers, pension reform, Public Employment Labor Law, Retiree Benefits
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Photo of Frank M. Crivelli Frank M. Crivelli

Frank M. Crivelli’s practice revolves around the representation of over eighty-five (85) labor unions in various capacities, the majority of which bargain for law enforcement entities. He is proud to be called on a daily basis to provide counsel to over 12,000 state…

Frank M. Crivelli’s practice revolves around the representation of over eighty-five (85) labor unions in various capacities, the majority of which bargain for law enforcement entities. He is proud to be called on a daily basis to provide counsel to over 12,000 state, county and local law enforcement officers, firefighters and EMS workers.

Mr. Crivelli specializes his individual practice in collective negotiations.  Over the past twenty (20) years, Mr. Crivelli has negotiated well over one hundred (100) collective bargaining agreements for various state, county, municipal and private organizations and has resolved over thirty-five (35) labor agreements that have reached impasse through compulsory interest arbitration.  Mr. Crivelli routinely litigates matters in front of the New Jersey State Public Employment Relations Commission, the New Jersey Office of Administrative Law, third party neutrals for mediation, grievance and interest arbitration, the Superior Court of New Jersey and the United States District Court for the District of New Jersey.

Mr. Crivelli founded and created the New Jersey Public Safety Officers Law Blog (www.njpublicsafetyofficers.com) approximately fifteen (15) years ago where he and members of his firm routinely publish blog posts regarding legal issues related to the employment of New Jersey Public Safety Officers.  The blog now contains over six hundred (600) articles and is reviewed and relied upon by thousands of public employees.  Mr. Crivelli has also published books and manuals pertaining to New Jersey Public Employee Disability Pension Appeals and the New Jersey Worker’s Compensation System. Currently, he is drafting a publication on how to Prepare and Negotiate a Collective Bargaining Agreement.  He lectures annually at the New Jersey State PBA Collective Bargaining Seminar, the National Association of Police Organization’s Legal Seminar, the New Jersey Public Employment Relations Commission Seminar on Public Employment Labor Law, the United States Marine Corps’ Commander’s Media Training Symposium and to Union Executive Boards and General Membership bodies on various labor related topics.

Prior to entering private practice, Mr. Crivelli joined the United States Marine Corps where he served as a Judge Advocate with the Legal Services Support Section of the First Force Services Support Group in Camp Pendleton, California.  While serving in the Marine Corps, Mr. Crivelli defended and prosecuted hundreds of Special and General Court Martial cases and administrative separation matters.  In addition to his trial duties, Mr. Crivelli was also charged with the responsibility of training various Marine and Naval combat command elements on the interpretation and implementation of the rules of engagement for various military conflicts that were ongoing throughout the world at that time. After leaving active duty, Mr. Crivelli remained in the Marine Corps Reserves where he was promoted to the rank of Major before leaving the service.

For the past fifteen (15) years, Mr. Crivelli has been certified as a Civil Trial Attorney by the Supreme Court for the State of New Jersey, a certification which less than two percent (2%) of the attorneys in New Jersey have achieved.  He is a graduate of Washington College (B.A.), the City University of New York School of Law (J.D.), the United States Naval Justice School, and the Harvard Law School Program on Negotiation.

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