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Fanwood council votes to withdraw from state health plan and join Bergen municipal insurance fund
Summary
Facing a projected 22% increase in the State Health Benefits Plan, Fanwood council approved resolutions to withdraw from the state plan, join the Bergen Municipal Employee Benefit Fund (a municipal HIF), and designate Fairview Insurance Agency as broker of record.
Council approved a linked set of resolutions authorizing withdrawal from the State Health Benefits Plan, joining the Bergen Municipal Employee Benefit Fund (a municipal health-insurance fund) and designating Fairview Insurance Agency Associates as the borough's broker of record.
Council members and administration said the decision follows analysis of rising costs: the administration cited a projected 22% increase in the State Health Benefits Plan for 2023 and said joining the Bergen fund would reduce the borough's near-term premium increase to a lower figure (presented in discussion as roughly a 13% increase compared with the 22% State Plan projection) while preserving employee benefits. Staff said the borough contracted a consultant to evaluate options and that the HIF would be self-administered with Fanwood having input on plan administration.
The mayor and administration said employees would be briefed in the coming days and that the borough will provide required notices (the transcript notes a 60-day notice requirement to the state). Council then moved all three resolutions together and carried them by roll call.
Practical effect and next steps: The resolutions instruct staff to notify the state of withdrawal, authorize the borough to join the Bergen Municipal Employee Benefit Fund and appoint Fairview Insurance Agency as broker of record. Staff said employee meetings are scheduled to explain benefits and the transition timeline.
