Title
Dept/ Agency: Administration/Division of Personnel
Action: ( ) Ratifying (X) Authorizing (X) Amending
Type of Service: State Health Benefits Program
Purpose: Terminating all participation under the State Health Benefits Program (Including Prescription Drug Plan and/or Dental Plan Coverage) for employees, dependents and retirees.
Entity Name: State of New Jersey, Department of the Treasury, Division of Pensions and Benefits
Entity Address: P.O. Box 299, Trenton, New Jersey 08625-0299
Contract Amount: To Be Determined
Funding Source: City Budget Lines
Contract Period: August 1, 2017 through January 31, 2023
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:
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WHEREAS, the City of Newark (the "City") is a member of the State Health Benefits Plan (SHBP) for its active and retired employees; and
WHEREAS, the SHBP has increased its rate for the 2023 renewal period by approximately 24%; and
WHEREAS, the City sought other more cost effective health care solutions for its active and retired employees; and
WHEREAS, the City through its brokers, solicited self-insured proposals in the private markets; and
WHEREAS, the City was able to secure proposals significantly more financially feasible than the SHBP; and
WHEREAS, the City wishes to terminate its contract with the SHBP; and
WHEREAS, the SHBP requires sixty (60) days notice to terminate the agreement; and
WHEREAS, the City of Newark is seeking to begin new coverage as self-insured effective February 1, 2023.
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 (the "City") and State of New Jersey, Department of the Treasury, Division of Pensions a...
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