The State Health Benefits Program that insures nearly 150,000 county and municipal employees in New Jersey is broke and headed for collapse next year, unless members agree to pay thousands of dollars more for their coverage, Gov. Phil Murphy announced Thursday.

The Democratic governor proposed spending $260 million in state funds to rescue the program by paying off its debt and creating a reserve fund to pay unforeseen excessive claims. But workers would have to pay much more in premiums and out-of-pocket costs. They will also see their choice of plans reduced from 50 to six, according to the governor’s office.

Premiums have risen 59% over the last three years , causing dozens of the largest counties and municipalities to flee for cheaper insurance options. That’s left behind a weake

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