Ocean View council approves move to Delaware Valley Health Trust, citing projected savings

Ocean View — After a presentation by town staff and representatives from the Delaware Valley Health Trust, council agreed to migrate town employee health benefits from the State of Delaware plan to the Delaware Valley Health Trust (Divit) effective July 1, 2026.

Town staff said the trust is a nonprofit, member‑run, self‑insured intergovernmental risk pool that serves municipalities and school districts in Pennsylvania and Delaware. Representatives noted Divit’s group‑retention history, wellness incentives (including potential rewards for preventive care and access to virtual physical therapy), and that the trust’s third‑party administrator is Aetna. The town reported it would mirror existing state plan offerings to minimize employee disruption.

Staff projected an employer cost reduction of approximately $35,000 for FY27 if the town migrates to the trust at the planned July 1 renewal. The town manager said employee orientation sessions were held on Dec. 19 and Jan. 5 and reported positive feedback. Council voted to support the migration; one councilor recused from the vote to avoid the appearance of conflict because a spouse is a state employee and the member receives state plan benefits.

What this means: The migration will take effect with the July 1, 2026 renewal period and will be implemented as part of the FY27 budget and renewal process. Staff said the trust requires a formal resolution and additional paperwork to join and that the town will complete those steps prior to the renewal.

Next steps: Staff will finalize transition paperwork, coordinate with human resources and present the final implementation plan to council.