By NANETTE LoBIONDO GALLOWAY
MARGATE The city's health insurance broker was back before the board Thursday, March 21 to provide additional information about the benefits of the city switching health insurance carriers.
The city and its employees are currently enrolled in the NJ State Health Benefits Plan but commissioners are considering leaving the program in favor of joining Horizon BCBS. According to Sean Gormley of Brown and Brown, the move could save between $351,000 and $414,000 on the overall cost of premiums if the state plan follows through with projections and increases premiums by double digits in 2025. The projected increase could include 10% on premiums plus and additional 4% margin, he said.
The city pays 72% of the premium, therefore we expect the savings to the taxpayers will be about $298,000, he said.
Horizon guarantees benefits will be equivalent to or better than the current plan.
Gormley said he met with employees since presenting the new plan to the commissioners on March 7.
The overall response was concern for change, he said. We have a few folks mention medications they are on. Everything presented would have a positive result should you move to Horizon.
Gormley said employees' co-insurance and out-of-pocket costs would decrease under the Horizon plan and prescription co-pays would remain at $10. Employees have concerns about coverage for certain brand name drugs, but Gormley said Horizon's formulary drug list is more extensive than the state plan currently offers.
In the event someone has a drug that is not on the list, under the new program, they will pay a $10 co-pay; on the old program, they pay the difference in cost, he said. They would have a positive result if they were in Horizon.
Under the Horizon plan, there would be no mandatory generic drug substitutions; the emergency room deductible would be $100, down from $125; and co-insurance and maximum out-of-pocket expenses will be reduced depending on if the employee has a single, husband and wife, or family plan, he said.
The board took Gormley's information under advisement.
In other business, the board awarded an $838,117 contract to Lexa Concrete, LLC of Hammonton for reconstruction of Winchester Avenue from Douglas Avenue to Clermont Avenue. Lexa provided the lowest of three bids received by the deadline on March 7. South Shore, Inc. submitted a bid totaling $902,077, and West Bay Construction, Inc. submitted a bid totaling $945,322. The project is being funded with state grants awarded to the city in 2023.
Engineer Ed Dennis Jr. said the city would apply for a new grant to fund painting with bright green paint additional sections of the bicycle lane installed during the road diet improvements on Atlantic Avenue. The city will also investigate enhancing the share-the-road markings on Winchester and Amherst avenues.
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