Conference/Public Meeting Agenda/Documents — Packet

Best Practices Worksheet CY 2012/SFY2013 West Orange Township (Essex) 0722 Please see Color Key at bottom of sheet for limits on answers Answer Question Comments As explained in Local Finance Notices 2011-20R and 2011-34, P.L. 2011 c. 78 requires employees to contribute toward healthcare based on a percentage of total premium 30 Yes cost, subject to a four-year phase-in. Has your municipality implemented the employee healthcare contribution provisions contained in P.L.2011 c. 78? Municipalities frequently contract with or designate insurance brokers to secure healthcare coverage from insurance carriers. Brokers are typically paid by third-party administrators (TPA's) hired to collect, review and pay healthcare bills. The municipality pays the TPA, who in turn pays the broker. Broker fees are often directly related to the amount of insurance premiums or fees paid by the municipality (i.e. the higher the premium, the larger the broker's commission). Thus, the municipality-broker-TPA 31 N/A The Township does not employ a TPA arrangement is vulnerable to abuse because brokers could face conflicting incentives in seeking lower-cost insurance alternatives. If your municipality contracts with or otherwise designates an insurance broker, is the structure for broker payments pre-set (i.e. plainly disclosed in the resolution and/or contract designating the broker of record) so as to mitigate the risk of brokers recommending more expensive insurance coverage to earn higher fees? The State Health Benefits Program (SHBP) offers medical, prescription and dental coverage options for more than 850,000 participants, including employees, dependents and retirees. All plans have substantial networks of healthcare providers, and provide 32 Yes services nationwide. 62% of municipalities, and

, including employees, dependents and retirees. All plans have substantial networks of healthcare providers, and provide 32 Yes services nationwide. 62% of municipalities, and 33% of counties, within New Jersey participate in SHBP. As your municipality's collective bargaining agreements come up for renegotiation, do your municipality's negotiation proposals seek contract provisions allowing its employees to be switched to SHBP? If your municipality does not participate in the State Health Benefits Program (SHBP), 33 Yes have competitive proposals for health insurance been solicited in the last three years; including from the Division of Pensions and Benefits for SHBP health insurance coverage? Personnel - PE