Essex County Workers Will Enter State Health Benefits Plan: Freeholders

ESSEX COUNTY, NJ — The Essex County Board of Chosen Freeholders has unanimously approved a resolution authorizing the County of Essex to enter active and retired employees into the State Health Benefits Plan effective Jan. 1.

The freeholders authorized the decision during their Sept. 28 public meeting.

According to a county news release, the “unprecedented decision” was made with more than 3,000 Essex County employees’ and retirees’ best interests in mind, and was “an effort to save taxpayers $10.4 million dollars and to also ensure a lay-off of more than 200 county workers would not occur.”

The freeholders stated in a joint news release that 24 out of the county’s 26 employee unions voted in support of the board’s decision.

The freeholders stated:

“The current premium paid by the county for Employee Benefits Plan offered by Aetna is $96,665,835. The county’s contract period with Aetna expires December 31, 2016. Over the course of several rounds of negotiations with Aetna, an increase of 14% over the current premium was provided by Aetna as its last and final offer for contract year 2017. This increase would result in a $10.5-million-dollar increase in the premium currently paid by the County. On Sept. 8, 2016, the State Health Benefits Plan (SHBP) released its 2017 rates. Among the many attractive elements of the 2017 offering is a 0.1% reduction (v. 2016) in the state for its active employees. If Essex County moves into the SHBP in 2017, the savings will be over $9.7 million versus the last and best 2017 offer of Aetna, the current provider. No other commercial provider made a viable offer for 2017. The administration’s conclusion was to recommend to the Essex County Board of Chosen Freeholders pass the resolution authoring the participation in the SHBP beginning in January 2017.”

Photo: Glen Frieson

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