VILLAS – After several years of double-digit increases in the cost of premiums, Lower Township has joined the list of Cape May County municipalities that have withdrawn from the State Health Benefits Plan.

The Township Council voted on Monday, Oct. 20, to authorize a contract with Amerihealth for health insurance coverage for municipal employees in place of the state plan. A second resolution authorized a contract with Braven Health for prescription coverage for retired employees.

Amerihealth, Township Manager Mike Laffey said, would cost the township 19% more in insurance premiums than last year, but premiums for the State Health Plan are scheduled to rise 36.5% for 2026.

Mayor Frank Sippel said the cost of health benefits through the state program has increased 60% over the past three years.

Laffey said the township only had until the end of October to make the change for the 2026 calendar year. He said the township had been “trapped” in the state plan for a number of years, but this year had the option of finding other insurance.

He said the township was able to secure three quotes, all of which involved an increase in rates but significantly less than what the state was offering. Amerihealth’s quote was the lowest of the three, the others coming from Horizon and Aetna.

“We took the lesser of all evils,” he said.

Laffey said the health insurance plan under Amerihealth was as good as or better than that of the state, and the township would soon be discussing the change with the unions.

He said the contract with Amerihealth would be for one year, during which they would look for less expensive insurance.

Ocean City left the state program for the 2023 plan year. Cape May, Avalon, Sea Isle City and Middle Township all followed suit the next year. All were able to negotiate private insurance options. This fall Stone Harbor attempted to leave the plan but was unable to do so.

Contact the reporter, Christopher South, at csouth@cmcherald.com or call 609-886-8600, ext. 128.