Township May Save Over $300K on Benefits Switch

The township committee recently voted to change healthcare carriers for municipal employees, which can result in up to $600,000 in savings.

“The plan is going to save us a lot of money,” Mayor Gary Quinn said. “We’re trying to save every dollar we can, every way we can.”

The township terminated their participating under the NJ State Health Benefits plan. As of Thursday, Dec. 1, municipal employees will be covered under Horizon Blue Cross Blue Shield, Township Administrator Veronica Laureigh said.

“Now we’re basing premiums on our own claim experience rather than everybody in the same pool for everybody who is a member of the state health benefits plan,” she said. “There are no changes to the plan, just a cheaper cost to the municipality…We’re hoping that this is a win-win for everybody.”

Through the switch, the township is anticipating to save somewhere between $300,000 and $600,000, Laureigh said. Though, she is unsure what the increase will be for next year.

“This is an example of how your government is being proactive, making sure that we’re cutting costs wherever we can,” Committeeman Sean Sharkey said. “And these days, cutting healthcare costs is really one of the best ways to help reduce overall cost in the years expenditures.”

The township saw a 12 percent increase in 2010 and 20 percent in 2009, Quinn said. Two years ago, the township faced a $32,000 increase in the health benefit plan on a monthly basis, he said.

“We know we’re going to get an increase from the state. Our rates are locked in now for next year,” Quinn said. “The dollars are going up and up and up every year.”

Ove the next few months alone, the township will save approximately $8,400, Quinn said.

As of Friday, July 1, the township also changed dental plan benefits for municipal employees. The change will save the township $40,000 for half a year and approximately $80,000 on a whole year, Laureigh said.

“The insurance is a positive win for the township and knowing the majority of contracts, the employees maintain equal coverage if not better,” Forked River resident Jim Letellier, a retired Lacey police officer, said. “These are positive things that you people are making and it’s good for the community as well but it’s also protecting the employees, which clearly is a contractual obligation.”