WILDWOOD CREST – The borough has decided to part ways with the State Health Benefits Program-Local Government plan after the State Health Benefits Commission announced a 36.5% premium rate increase beginning in 2026.
At their Wednesday, Sept. 10, meeting the Board of Commissioners voted to leave the state health plan, including the prescription plan. The commissioners then passed separate resolutions for employee benefits and retiree benefits plans.
Those who are retired will be enrolled in a health and prescription program with Braven Health, while current employees will be enrolled with AmeriHealth NJ for both health care and prescriptions.
The borough will be joining Ocean City, Sea Isle City, Cape May and Middle Township as county municipalities that have opted out of the state plan in favor of private insurance in recent years due to rapidly rising premiums. North Wildwood and Wildwood are also not part of the state plan, and Stone Harbor is considering leaving.
The state adopted the 36.5% increase, formally recommended by the state’s actuary, in early September.
Several factors led to the steep increase, including significant losses in prior years, with claims and expenses outpacing premiums; medical inflation, higher utilization of services and the use of more expensive care; the cost of prescription drugs, particularly high-cost drugs like Ozempic and Wegovy, and the departure of healthier employee groups from the state plan.
According to information provided by the Crest, local government workers have seen a cumulative increase of 112% in their health-care premiums since 2021. Municipalities pay the major share of the cost of health insurance for their workers, with some portion of that cost paid by the employees.
Mayor Don Cabrera gave the Herald the following statement on the change in the health benefits plan:
“In keeping with our fiduciary responsibility, Wildwood Crest will transition from New Jersey state health benefits to AmeriHealth NJ in 2026. This change is projected to save the taxpayers well over $100,000 annually.
“The new coverage will be at least equal to the benefits currently provided to our employees and retirees. This is the second year in a row where changes were made to health benefits to cut municipal expenses.”
Contact the reporter, Christopher South, at csouth@cmcherald.com or call 609-886-8600, ext. 128.
