LONGPORT – The Board of Commissioners Wednesday, Sept. 18 agreed to join a new health benefits fund. The board discussed proposed increases for the NJ State Health Benefits Plan and decided it would be less costly to join the Southern Coastal Regional Employee Benefits Fund.
According to Administrator A. Scott Porter, costs for the state plan have increased more than 50% over the last three years and it is projecting an additional 16% increase in 2025.
Making the switch will save taxpayers about $25,000, he said.
Porter noted that under the NJSHBP, costs increased 24% in 2022 and 7% this year and has projected a 16% increase for 2025.
When it comes down to the numbers, taxpayers funded approximately $700,000 for the municipal share of employees’ healthcare costs in 2024. If the borough stays with the NJSHBP, costs in 2025 will increase $115,000 to $814,000. However, if it makes the switch, costs will increase $90,000 to $788,000, he said.
“It’s still a significant increase,” Porter said. “If this doesn’t work, we do have the ability to go back to the state plan.”
Due to rate increases over the last few years, many municipalities are dropping out of the state plan and going in a different direction, Porter said.
“The municipalities that stay may not be the best-rated so the costs will continue to be high and increase,” he said. “We are able to get out because we have a better experience rating.”
He recommended the borough make the switch to the new carrier.
The board approved two resolutions – the first gives the SHBP two months’ notice that Longport intends to leave the plan, and a second resolution approves joining the Southern Coastal Regional Employee Benefits Fund.
Porter said the borough held a meeting with employees and Southern Coastal representatives to familiarize themselves with the new company and the plan.
Porter said there was some “angst” among employees, but the plan offers medical coverage that is the same or better than the state plan.
The new insurance plan will go into effect Dec. 31, 2024.
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