RESOLUTION #2008-032

AUTHORIZING HEALTH CARE PLANS FOR THE BOROUGH OF HARVEY CEDARS UNDER THE DIRECTION OF THE STATE HEALTH BENEFITS PROGRAM

WHEREAS Chapter 103, P.L. 2007, required that new medical plans be offered to active and retired members of the New Jersey State Health Benefits Program (SHBP); and

WHEREAS the SHBP is offering two types of medical plans, Preferred Provider Organizations (PPO) and Health Maintenance Organizations (HMO) and said plans shall be known as:

NJ DIRECT10 (successor plan to the Traditional Plan)

NJ DIRECT15 (replaces NJ PLUS)

AETNA HMO

CIGNA Healthcare HMO; and

WHEREAS the effective date for the start of the NJ DIRECT and HMO plans is April 1, 2008 for all Local Government employees and retirees; and

WHEREAS the SHBP permits Local Government the choice of offering to its employees only one of the PPO plans.

NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Borough of Harvey Cedars that as a result of collective bargaining agreements, the Borough of Harvey Cedars shall offer NJ Direct10 as its sole PPO plan at this time and shall authorize the automatic transfer of all active employees currently enrolled in the Traditional or NJ PLUS plans to the NJ Direct10 plan as of April 1, 2008.

BE IT FURTHER RESOLVED that any active employee currently enrolled in Aetna or Cigna will remain in their HMO plan unless they elect to enroll in another plan, and any active employee currently enrolled in an HMO not offered by the SHBP as of April 1, 2008 must complete an enrollment application.

PASSED ON: February 19, 2008