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Spring Lake Heights council approves exit from State Health Benefits Program, appoints Brown & Brown and joins NJ Solutions fund
Summary
After a presentation from Brown & Brown, the Borough Council voted to terminate participation in New Jersey's State Health Benefits Program, appoint Brown & Brown as broker and join the NJ Solutions Joint Health Insurance Fund; officials cited steep SHBP cost growth and immediate budgetary relief.
Council President William Graetz and the Spring Lake Heights Borough Council on April 20 voted to terminate the borough's participation in New Jersey's State Health Benefits Program and to move employee coverage into the NJ Solutions Joint Health Insurance Fund, following a presentation from an insurance broker.
Jacob Krakower of Brown & Brown, the insurance brokerage firm the council appointed as broker of record, told the council the borough's employee health-care costs had increased about 70% over the past four years while remaining in the State Health Benefits Program. Krakower said the proposed change would provide coverage "equal to or better than the current" plans and would reduce near-term costs, estimating roughly $100,000 in savings over the next six months. He said July 1 was the proposed effective date and that the borough must provide a 60-day notice to exit SHBP, making May 1 the practical deadline to begin the process.
The council passed Resolution R2026-89, terminating participation in SHBP, R2026-90 appointing Brown & Brown as broker of record, and R2026-91 authorizing the borough to join the NJ Solutions Joint Health Insurance Fund. All three resolutions were approved by recorded unanimous vote. Council also approved Resolution R2026-92 to apply to the Local Finance Board pursuant to N.J.S.A. 40A:4-45.1 to exceed the CAP; Councilman John Casagrande said rising health-care costs and legacy liabilities had delayed introduction of the municipal budget and prompted the application.
Council members and staff said the change is intended to reduce the borough's payroll-benefit expense and limit budget pressure from rapidly rising premiums. The council did not adopt plan documents at the meeting; Krakower explained coverage terms and comparable carriers, including continuation of Horizon Blue Cross Blue Shield medical coverage and Delta Dental. The borough administrator and attorney remained available to answer implementation questions; the resolutions give staff authority to complete broker onboarding and to finalize membership in the joint fund.
The council voted to approve the related bills list and other routine items. The meeting record shows the governing body expects to complete necessary notices and administrative steps before the proposed July 1 start date.
