CAPE MAY – The agenda of the April 4 Cape May City Council meeting called for a vote on a resolution to join the Southern Coastal Regional Employee Benefits Fund. The vote never happened.
Mayor Zack Mullock announced that the vote would be tabled given the concerns expressed by members of the city’s union workers.
The proposal to join an alternative to the state employee benefit plan was just one of many reactions across the county to the surge in employee health benefit premiums this year that left municipalities searching for ways to deal with an unexpected over 20% hike in costs.
Following the deletion of the resolution from the agenda, City Manager Michael Voll said employees had asked for “more time to digest” the new plan and “go over it with their families.”
Mullock added that the council wants “this to be a savings not only for the city but also for the employees.”
Mullock said the city should proceed “only if this is a mutual benefit for both parties for certain.”
The Southern Coastal Regional fund was founded in 2011 as a regional health insurance fund for public entities. Municipalities are not required to participate in the State Health Benefits Program (SHBP), although most do. This year’s hike in premiums has led many towns to explore alternatives both within and outside the state benefit offerings.
The Southern Coastal fund is a joint insurance fund of the membership entities. Its rate structure is based on actuarial analysis.
The fund website lists six current members from Cape May County. These members are all school districts from Dennis Township, Lower Cape May Regional, Lower Township, Ocean City, Upper Township and West Cape May. No county municipal governments are listed as members.
The self-declared purpose of the fund is “containing medical costs” while providing access to quality care. According to its own 2021 financial reports, it operated with balance sheet assets of $45.6 million. The fund’s 2023 budget is listed at $138.5 million.
In addition to the six county school districts, the Southern Coastal fund lists 22 other membership entities, seven of which are not school districts. These seven include both Salem and Cumberland counties, Brigantine, Egg Harbor Township, Penns Grove, Pittsgrove Township and Woodstown Borough.
The fund works with entities in Atlantic, Salem, Cumberland, and Cape May counties. Each public entity with membership in the fund is represented on the Fund Executive Committee.
Any change in employee health care program will affect both current and retired employees. It also affects any Consolidated Omnibus Budget Reconciliation Act (COBRA) participants at the point when the state plan is terminated.
There was no comment by the city at the meeting as to when the city might return to the issue of a change in employee health care plans.
Contact the author, Vince Conti, at vconti@cmcherald.com.
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