Trenton – Senator Paul Sarlo, author of the law utilizing Third Party Administrators to capture cost savings in health care expenses, today welcomed the acknowledgment by the Treasury Department that premiums for public employee medical benefits will be reduced for the coming year.
“The premium reduction of four percent will result in significant savings for municipalities that had been experiencing perpetual increases as high as ten percent,” said Senator Sarlo, who crafted the law requiring audits of insurance claims to prevent overpayments. “I am gratified to see that this cost-cutting reform is producing substantial results that will produce savings for state and local governments, for taxpayers and for public employees.”
Treasury officials announced the premium reductions, which are the byproduct of legislative initiatives putting Third Party Administrators and Pharmacy Benefit Managers in place.
“One of the most important provisions of the TPA law is the guarantee that the state will have ownership and access to all health insurance claims data,” said Senator Sarlo, who chairs the Senate Budget Committee. “This data is vital to analyzing healthcare costs so that we can continue to realize savings. Affordable, quality health care is a priority for everyone involved.”
The Third Party Administrator program is a centerpiece of the Path to Progress agenda designed to make public services and obligations more affordable.