copyright MGN

SEA ISLE CITY — City employees and retirees will have a new health insurance carrier effective Feb. 1, 2012.

During its Nov. 29 meeting, members of City Council approved a resolution to terminate the city’s participation under the State Health Benefits plan. In its stead, employees and retirees alike will be covered by Horizon Direct Access for their health and prescription coverage.

Kellie Seib of the Marsh and McLennan Agency, LLC, told Council the switch to Horizon would save the city $208,000 for the upcoming year. Marsh and McLennan is the broker of record for the city’s health insurance

“They (Horizon) have agreed to match the benefits with the State Health Benefit plan and will provide a letter guaranteeing that,” Seib assured Council. “There will be no change in the level care they have now. It will be the same.”

According to Council President John Divney, the city currently pays $2.4 million in premiums to the State Health Benefit Plan.

When asked if Horizon would commit to a two-year premium, Seib responded, “Horizon does not, as a rule, provide any two-year rate guarantee or renewal cap.”

The city opted to join the State Health Benefits plan several years ago when faced with a large premium increase from Horizon.

“A few years ago, we saw substantial savings by going into a large pool,” said Divney. “Right now we can say, ‘Hey! This is great news!’ We don’t want to be sitting here a year from now saying, ‘We should have stayed with the State Health Benefits plan.’”

“When we were doing union negotiations, we dangled a lot to get them to take State Health Benefits,” said Councilperson Mary Tighe.

“We have the absolute ability to do this,” responded City Administrator George Savastano. “We do not need to negotiate.”

In the event Horizon’s premiums increase substantially in future years, Seib told Council they could return to their previous plan.

“There is nothing to stop you from going back into the State Health Benefits plan,” she said.

“If we cannot go back into the State Benefit plan, we are stuck in the private sector, right?” asked Councilperson Frank Edwardi.

“As your broker, we would go out and shop plans,” responded Seib.

According to Seib, under the new Horizon plan employees will see no change in coverage; however Direct Access pays providers less than other plans.

“I’ve worked on the City of Sea Isle’s account for 13 years,” she said. “And it’s extremely rich.”