County Eyes Possible Health Plan Change

CREST HAVEN — County Chief Financial Officer Edmund Grant survived a “tsunami of information” regarding the State Health Benefit Plan, but there was no decision to switch county workers to that system from the present self-insured plan administered by AmeriHealth.
At the Tue., Oct. 25 meeting, freeholders passed a resolution that authorized the switch, but only due to time constraints (90 days) set by the state, not because a change is imminent. A final decision is expected by year’s end.
Object of the exercise, weighing costs between Horizon Blue Cross and Blue Shield of N.J. and the state plan, said Grant.
At first glance, the state program held allure, but after searching the details, questions arose, Grant said.
Those questions centered on retiree coverage and some other program facets.
As stated in the enabling resolution, the county “desires to continue to reduce the costs of health benefits provided to Cape May County active employees and retirees, as well as all dependents, without compromising the substance of the benefit.”
The state program needs more scrutiny to determine which plan will better serve the needs of those covered.
“I didn’t volunteer to be on the agenda,” Grant quipped at the outset of the caucus meeting prior to the regular session.
Grant told the board providers gave “six straight hours of great counter proposals” to make sure all points were clarified.
He added there was a “very competitive situation between the two options.”
He said the county’s unions have been updated regarding the proposals.
“This whole process involved keeping as many involved as possible,” Grant told the board.
Unions were “supportive of the options that come out in everyone’s best interests,” he added.
“This will have a tremendous impact on employees now that they have to pay a piece of the total expense,” Grant said.
Effective January 2012, management and non-union personnel will begin paying a percentage of their healthcare premiums based upon their salary.
At the end of four years, when all bargaining unit personnel will be paying their portion, amounts will range from 6 to 35 percent of premiums, based upon their salaries, said Administrator Stephen O’Connor.
Not all bargaining units will start at the same time.
County Counsel Barbara Bakley-Marino told the board she received information on the state health plan, “As late as 9 p.m. last night (Oct. 24).” Even with that data, Bakley-Marino said no retirees’ rates had been provided.
O’Connor expressed concern over employee contributions “when this goes into place” because the county presently self-funds insurance.
“What happens in the state plan when you think you are getting lower rates, then you lock in, and rates go sky high?” asked Freeholder M. Susan Sheppard.
“We thought we had a no-brainer situation,” said Grant.
Sheppard referred to a similar situation in Ocean City, where she serves on city council.
“What happened to us, we saved money the first year, and the second year it went up a lot. But the cost associated with leaving is great, if the state plan is not what you want. You get sucked in and there you are,” she said.
Grant said the county had reimbursed employees for 19,000 doctor visits and 22,000 prescriptions.
“It all goes back when we go to negotiations. That’s all there is to it. Everybody has to suffer a little bit of pain,” Sheppard said.
Contact Campbell at (609) 886-8600 Ext 28 or at: al.c@cmcherald.com