The health benefits strategy presentation, led by representatives from Marsh McLennan Agency and the Difference Card, focused on addressing the escalating costs associated with the State Health Benefit Plan. Tony Mahon and Chris Calderone outlined a collaborative initiative with the Atlantic County Administration that seeks to provide a cost-effective alternative through the introduction of an HRA. The plan aims to complement the existing State Health Benefit Plan, which has suffered from reduced appeal due to previous complications.

Calderone emphasized the urgency of the proposal, noting a staggering cumulative increase of 44% in health insurance costs over three years. He pointed out that a family on the Direct 10 plan now incurs costs exceeding $50,000 annually. The proposed HRA solution involves purchasing a lower-cost plan, thereby achieving significant payroll cost reductions while preserving or even enhancing the quality of coverage. For employees enrolled in the Direct 10 plan, the strategy promises a 24% reduction in payroll costs, with similar reductions projected for those in the Direct 15 and Direct 2030 plans. Notably, the latter plan is expected to see a 133% decrease.

The Difference Card plays a role in this strategy, designed to cover co-pays and deductibles, allowing employees to benefit from savings without bearing higher out-of-pocket expenses. The card, functioning like a MasterCard, is accepted at any provider that accepts such payments. Employees and their dependents will receive these cards.

The presentation highlighted the successful implementation of this strategy in several counties across New Jersey, including Hunterdon, Gloucester, and Ocean. Essex County recently adopted the approach, reporting substantial savings. The discussion also included inquiries about the operational aspects of the HRA and its integration with existing plans, with the presenters assuring that the benefits would meet employee needs without compromising access to care.

An engaging discussion unfolded about the Difference Card, highlighting its inception in 2001 and its 15-year operation within the New Jersey public sector. The card offers no-cost co-pays and reduced payroll deductions, a concept initially met with skepticism among potential users. However, as more members enroll, enthusiasm is expected to grow, leading to broader adoption during subsequent open enrollment periods.

Concerns about card usage were addressed, with assurances that members can submit claims through various methods, including mobile apps, with rapid processing times. The card can also be integrated into mobile wallets for added convenience. Feedback from union representatives was positive, with educational outreach efforts contributing to the program’s acceptance. The unions involved, such as ASME, CWA, and the Teamsters, have reportedly reacted favorably to the program. Personal testimonials from members underscored the card’s potential impact, with one member recounting how it enabled her to afford necessary physical therapy visits following surgery.

Further discussion explored the potential hesitancy among some members, attributed to a lack of understanding. However, positive experiences and word-of-mouth recommendations have historically led to increased enrollment after initial reluctance. Presenters underscored the administrative staff’s role in effectively communicating the benefits of the Difference Card, facilitating a smoother implementation process.

The meeting also addressed several resolutions and projects, focusing primarily on budgetary matters and grant applications. Notable among these was Resolution 94, involving $228,500 from the New Jersey Office of the Insurance Fraud Prosecutor for a reimbursement program, and $283,300 allocated to the Municipal Alliance for preventing drug and alcohol abuse.

Other resolutions included grant applications for the Criminal Alien Assistance Program and tanning facilities inspection, alongside a professional services agreement with Angels in Motion NJ for addiction recovery services. An agreement with Holman Frenia Allison PC was approved for auditing services, and competitive contracts were authorized for interpreter services and masonry maintenance.

Resolution 118 sparked a brief discussion about publishing legal notices on the official government website instead of local newspapers. The change was touted as a cost-saving measure that would also enhance transparency and accessibility. Despite supportive comments, no public feedback was recorded on this resolution.