FOR IMMEDIATE RELEASE:
July 31, 2009
Change in health benefits to save county $2 million
Review of health care administration yields new provider
FREEHOLD – The Monmouth County Board of Chosen Freeholders has adopted a resolution accepting a bid by Horizon Blue Cross Blue Shield of New Jersey to manage the county’s self-funded point-of-service health care program. The three-year contract begins Oct. 1.
Horizon will replace Aetna as the provider of network administration of health benefits to 2,993 county employees. Of the remaining employees, 411 are enrolled with Qualcare Inc., an HMO, and 251 are covered by the old indemnity plan that had stopped accepting new enrollees in July 1994.
The change follows a review of the county’s medical plans earlier this year by the Insurance Buyer’s Council at the urging of Freeholder Deputy Director John D’Amico. A comprehensive review of county health benefits was last completed in 1994, although negotiations occur every year.
“This action gives the county the ability to lock in a network manager through 2012 and potentially 2013,” D’Amico said. “We received favorable pricing from Horizon, which allows us to project savings while we continue to provide health care for county workers.
“The savings to Monmouth County over the time of this contract will amount to more than $2 million when factoring in estimated costs for health care in 2010 and beyond,” D’Amico said. “These savings would not have been realized had we not conducted the initial review.”
The change in network managers reflects no change in benefits coverage to a majority of county employees, but it does offer more options to employees seeking medical care.
“Horizon has a larger provider network that includes additional doctors, hospitals, imaging centers and other facilities,” Freeholder Director Barbara J. McMorrow said. “These health care providers will provide employees with additional options when seeking both well-care and sick-care.”
Freeholder Robert D. Clifton, who oversees the county’s finances, said the savings is welcome news in a year when the county was hit hard by declining revenues. “This is one of many areas the county has looked at to save taxpayer money, but it won’t be the last. We are very pleased.”
“The savings will come strictly from the administration of the plan and not from a change in the coverage that our employees currently have,” Freeholder Lillian G. Burry said. “Anytime we can get the same thing for less money we should take advantage of it. This is good news for taxpayers.”
“With health care costs continuing to take up a large portion of the county’s budget, any place we can cut cost and maintain services is a good thing,” Freeholder Amy A. Mallet said. “We’re very proud that we will be able to save several million dollars over the course of this contract.”
The cost of health care benefits with Horizon Blue Cross Blue Shield of New Jersey as the network manager will cost $97,559,349 for a three-year period beginning Oct. 1, 2009, with a one-year renewal option. Horizon’s bid for the first year of the contract was $29,026,234, while Aetna’s bid for same first-year period was $31,085,298.
The cost of health care benefits with QualCare Inc. as the network manager of the HMO program will cost $7,444,437 for a two-year period beginning Oct. 1, 2009. The contact guarantees the administrative fees and continues coverage levels and the provider’s list.
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