Gov. Chris Christie must privatize health benefits | NJ.com

Gov. Chris Christie must privatize health benefits | NJ.com: "In his first few months in office, Gov. Chris Christie has proven he is no shrinking violet. Breaking new ground on everything from affordable housing to school funding, the governor has shown that he is not afraid to trot out big, bold ideas in an attempt to heal the long festering wound that has been infecting New Jersey’s fiscal health.

And so it is without trepidation or hesitation that I recommend yet another ambitious concept that not only can save us hundreds of millions of taxpayer dollars, but can improve the health of our state work force.

As a lawyer, lobbyist and insurance company executive, I have learned a thing or two about how the health industry, and the health insurance industry specifically, work. These lessons can be applied to work miracles for New Jersey’s taxpayers and for its workers as well.

Currently, the state provides health care coverage for its 800,000-plus public employees and retirees. The state is what is known in the industry as 'self-funded.' This means the state pays for medical claims out of its own funds, rather than contracting with an insurance company to take on the risk associated with the medical care costs of public employees. When public workers and retirees get sick, they go to the doctors’ offices, labs and hospitals, and the state pays the bills. The system is administered at additional significant costs by private vendors."