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By NANETTE LoBIONDO GALLOWAY
The Downbeach communities of Ventnor, Margate and Longport, and Atlantic County are dealing with a more than 20% increase and the cost of providing health insurance to their employees. The New Jersey State Health Benefits Plan has informed municipalities that premiums would increase more than 20% in 2023.
According to Longport CFO Jenna Kelly, Longport will experience a more than $100,000 increase in the cost of providing health insurance to borough employees.
“We’re looking into other options,” she said at Wednesday’s Board of Commissioners meeting.
Kelly said the borough is expecting a $101,400 increase in the cost of providing employees with health insurance, and that employees will also see their contributions rise.
She said the borough has received its claims history report from the SHBP, which has been forwarded to a health insurance broker who is helping the borough obtain quotes for new coverage.
In Margate, CFO Lisa McLaughlin advised commissioners that despite the increase, the city should remain in the NJSHBP for next year.
“There’s nothing we can do about it other than what other municipalities have done in sending their input to the state,” she said.
McLaughlin said Oct. 6 that although the city has been advised the increase will exceed 20%, the plan has still not provided any notice of changes to the premium amounts, which is information employees will need to consider before making their plan selections during the October open enrollment period.
“It might impact if any employees want to make a change in their plan for next year,” she said. “You have to do it in October.”
McLaughlin said the city’s health insurance brokers are “marketing the plan,” but the only option for the city is to remain in the state program due to the municipality’s loss ratio, which is above 100%.
“The claims that are submitted are taking out more than we are putting in,” she said.
McLaughlin said the increase will add approximately $200,000 to the budget, but taxpayers may not see an increase in their taxes.
“With the increase in our ratables that will be a half a penny on our tax rate and we are planning to offset any tax increase by anticipating more surplus,” she said.
Administrator Richard Deaney reminded taxpayers that employees pay about a third of the cost of health insurance based on a percentage of their salaries.
And in Ventnor, Comptroller Amy stover said the city reviews insurance policy decisions on a yearly basis. Insurance broker Terry Flynn will see if viable alternatives to the SHBP exists. If so, the city will move to a new provider of insurand.
“The impact of a 24% increase would be an approximately $400,000 increase, which is offset by contributions from the employees. We are just starting the 2023 budget process, which makes it hard to know the actual impact,” she said.
Atlantic County Executive Dennis Levinson sent a letter Oct. 17 to the Atlantic County Board of Commissioners stating the 22.8% increase would have a huge impact on the county and local governments.
At the county level, the increase amounts to $4.2 million for existing employees and an additional $2 million if the county backfills vacancies.
“If savings cannot be realized, the $4.2 million increase in health benefit costs equates to a 1.17-cent tax rate increase…Atlantic County employees will not only be required to pay more in cost share contributions, but may also pay more in property taxes, thus taking it on the chin if not once, but twice,” he said.
In the letter, he said the state withheld information about the rate increase until September, leaving little time to negotiate, and he demanded “full transparency” about the governor’s negotiations with state unions limiting their rate increase to 3%.
“Had local governments been aware of the circumstances, we may have also been able to negotiate,” he said.
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