Township In Line to Save $750,000 in Health Benefit Costs Next Year

The township’s willingness to house its medical and dental health care plans with one company led the company to slash its initial 2014 renewal premiums by more than $750,000.

That was the word Nov. 12 from Stuart Migdon, of the Woodbridge-based Business & Governmental Insurance Agency, the township’s insurance broker.

Migdon told the Township Council at its meeting that Horizon Blue Cross and Blue Shield agreed to lower its costs for the township’s health and dental insurance premiums next year.

He said the township was looking at a 10.8 percent increase from Horizon for the health insurance policy, but the company negotiated a flat rate. He said Horizon also agreed to pay whatever taxes the township would owe for the policy, bringing the cost savings to $581,901.

“That’s the only 0 percent increase we’ve delivered for our clients,” he said.

For the prescription plan, Migdon, said, Horizon initially wanted a 14 percent increase, but the company finally agreed to an 8 percent increase, saving the township $141,000.

“We found one vendor that was $75,000 less, but then Horizon would have increased the medical portion by 2 percent, so we decided to go with Horizon,” he said.

Migdon told the council that they’re playing less than they would if they signed up with the state benefit plan.

“Your cost is lower than the state health benefits plan, by about $103,000, and your benefits are substantially richer,” he said.

The dental plan was originally proposed with no increase next year, he said. But after negotiating, Horizon agreed to a 4 percent reduction in teh premium next year.

“Some carriers were a little less expensive, but if Horizon coordinates the dental and the medical, you have a savings there,” he said.


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