Title
Dept/ Agency: Administration/Division of Personnel
Action: ( ) Ratifying (X) Authorizing (X ) Amending
Type of Service: State Health Benefits Program
Purpose: Amending Effective Date and Certain Other Changes to the State Health Benefits Program for Employees and Dependents
Entity Name: State of New Jersey, Department of the Treasury, Division of Pensions and Benefits
Entity Address: PO Box 299, Trenton, NJ 08625-0299
Contract Amount: To Be Determined
Funding Source: City Budget Lines
Contract Period: August 1, 2017 through July 31, 2018
Contract Basis: ( ) Bid ( X ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient ( ) n/a
Additional Information:
body
WHEREAS, pursuant to Resolution 7R1-m (AS), adopted January 19, 2017, the Municipal Council of the City of Newark authorized the Mayor and/or his designee the Business Administrator and/or the Director of the Division of Personnel to execute all necessary and required documents for the City of Newark’s employees and dependents to participate in the State Health Benefits Program; and
WHEREAS, at the time, the City of Newark (“the City”) elected to participate in the Employee Prescription Drug Plan defined by N.J.S.A. 52:14-17.25 et seq. and authorized coverage for all employees and their dependents in accordance with the statute and regulations adopted by the State Health Benefits Commission; and
WHEREAS, the Mayor and/or his designees, the Business Administrator and/or the Director of the Division of Personnel desire to amend the terms of the existing agreement between the City of Newark and the State of New Jersey, Department of the Treasury, Division of Pensions and Benefits allowing the City to maintain its existing prescription drug plan with Horizon as its prescription drug plan. This plan is comparable to the State Employee Prescription Drug Plan; and
WHEREAS, the City of Newark will offer to eligible employees the following health benefits plans: AETNA HMO, Horizon HMO, AETNA Freedom 1525, AETNA Freedom 2030, NJ Direct 1525, NJ Direct 2030, AETNA Liberty Plan, OMNIA Health Plan, AETNA Freedom 2035, NJ Direct 2035, AETNA Value HD 4000, AETNA Value HD 1500, NJ Direct HD4000, and NJ Direct HD1500, but will not offer AETNA Freedom 10, AETNA Freedom 15, NJ Direct 10, and NJ Direct 15, the agreement is being amended to include that language; and
WHEREAS, the City of Newark elects a two month employer premium delay option, the agreement is amended to include the following language: “The City of Newark hereby resolves to exercise a two month employer premium delay option under the State Health Benefits Program, commencing with the August 2017 premium. The City understands that, should its group elect to terminate the State Health Benefits Program participation sometime in the future or the Programs cease to exist, any delayed premiums will become due and payable immediately. The City understands that this premium delay shall take effect 60 days following receipt of this resolution by the State Health Benefits Commission. Since employee premium contributions are tax deferred, the submission of those contributions cannot be delayed or used for any other purpose other than the payment of healthcare premiums. Therefore, employee premium contributions must be remitted timely. The City understands, in accordance with N.J.S.A. 17:9-5.3(b), that full payment of health benefit charges must be received on or before the due date printed on the bill and that interest shall be applied to the total transmittal of health benefit charges from the day following the due date until the day payment is received. Coverage for employees and retirees may be terminated for amounts 90 or more days past due”; and
WHEREAS, the City of Newark is amending the current contract start date from May 1, 2017 to August 1, 2017, or as soon thereafter as it may be, for a one year period; and
WHEREAS, all other terms of the agreement between the City of Newark and the State of New Jersey, Department of the Treasury, Division of Pensions and Benefits remain the same.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Agreement between the City of Newark and State of New Jersey, Department of the Treasury, Division of Pensions and Benefits, PO Box 299, Trenton, New Jersey 08625-0299, is hereby amended to maintain Horizon as the prescription drug plan, list the State Health Benefits Programs the City will not offer, and elect a two month employer premium delay option.
2. This resolution shall take effect immediately and coverage shall be effective as of August 1, 2017 or as soon thereafter as it may be.
3. The Mayor and/or his designee, the Business Administrator and/or the Director of the Division of Personnel are authorized to prepare and execute all necessary and required documents for the City of Newark’s employees and dependents to participate in the State Health Benefits Program.
4. Upon adoption of this authorizing resolution, the City Clerk is authorized to certify on the State’s mandatory form Resolution HB-0077-1213, HA-0892-1015, and FH-0170-0715, as completed and attached to this authorizing Resolution as being a true and correct copy of a resolution being duly adopted by the Municipal Council.
5. A copy of all documents shall be filed with the Office of the City Clerk by the Director of the Division of Personnel.
6. All other terms and conditions of the Agreement remain the same.
STATEMENT
This resolution authorizes the Mayor and/or his designee, the Business Administrator, and/or the Director of the Division of Personnel to enter into and execute an Amendment Agreement between the City of Newark and State of New Jersey, Department of the Treasury, Division of Pensions and Benefits, PO Box 299, Trenton, New Jersey 08625-0299, to amend the contract start date to August 1, 2017, maintain Horizon as the City’s prescription drug plan, list the State Health Benefits Programs the City will not offer, and elect a two month employer premium delay option.