Landmark Healthcare Deal Reached in New Jersey

Earlier this month, CWA members and retirees in New Jersey, in partnership with other public sector unions, including AFSCME and the American Federation of Teachers-Council of N.J. State Colleges, reached a landmark agreement with the State of New Jersey to avert catastrophic healthcare cost hikes for State workers.

The agreement balances modest increases in out-of-pocket costs with commitments on longer-term governance and cost containment reforms, improving a plan covering hundreds of thousands of working families. The deal also calls on the State Legislature to rescind the budget resolution that initiated these negotiations and to ensure that future budgets respect existing healthcare agreements. The campaign will continue, however, as Local Government employees who are not covered by this agreement still face potentially crippling healthcare increases.

The State Health Benefits Plan (SHBP) premiums were projected to rise over 17 percent in 2026, which would cause a double-digit increase in paycheck contributions. Key wins in the agreement include zero increases to member contributions for 2026; protected current copays for primary care, specialist, and urgent care office visits; and a reverse auction to secure a pharmacy benefit manager contract, projected to save hundreds of millions of dollars.

"This agreement is a hard-won victory for the 100,000 state workers and retirees who were facing catastrophic healthcare cost hikes," said CWA District 1 Assistant to the Vice President Billy Gallagher. "It proves that when we sit down at the table through the proper channels, we can find solutions that protect working families and control costs for the state. This deal not only rescinds a dangerous precedent of bypassing our contracts but also establishes a collaborative path forward to tackle the root causes of rising healthcare costs. It is a powerful testament to what we can achieve through collective bargaining and good-faith dialogue, and it ensures our members' voices are heard in shaping the future of their healthcare."

Click here to read more details in the CWA District 1 member update.

CWA members from across N.J., in partnership with other public sector union allies, won a landmark victory in the fight for affordable healthcare.