Franklin Lakes April 25, 2012 THE VILLADOM TIMES I • Page 7 Council decides to change employees’ medical plan by Frank J. McMahon The Franklin Lakes Council has passed resolutions to terminate its participation in the state’s health benefits program for borough employees and to join the Bergen Municipal Employee Benefits Fund, known as the Gateway BMED fund. The switch in health plans was made at last week’s council meeting and is expected to save the borough approximately $95,000 a year in health care insurance costs, with about $86,000 of that savings for the borough and $9,000 for the library. The change will reportedly maintain the same benefits and employee contributions as the state plan. In response to employees’ concerns, the agreement with Gateway BMED was adjusted to provide the traditional benefits for employees and covered dependents who are receiving active treatment from physicians who are not in the BMED network of physicians at the time the BMED coverage begins. That coverage will continue as though those physicians are in-network under the BMED plan until such time as the employee or dependent is no longer receiving active treatment for the illness or condition. However, active treatment, as defined by BMED, would not cover ongoing or maintenance treatments for a chronic or longterm condition. The adjusted agreement will also reimburse employees or their dependents for additional expenses incurred as a result of the difference in deductible and co-insurance amounts for coverage by a physician who is in-network in the state plan, but out-of-network in the BMED plan, for the balance of this year up to a total of $30,000 for all claims. Prior to the council’s vote to change health care plans, Mayor Frank Bivona told the employees who attended the meeting, “We’ve heard your concerns.” He said those concerns are addressed in the resolutions the council planned to consider at that meeting. Bivona added that he expects the changes in the BMED agreement will ease some short-term burdens on the employees and allow for a transition time for employees to find doctors who are in the BMED network of providers or opt out of the BMED plan and join their spouses’ health plans. He also pointed out that the BMED plan is identical to the state’s health care plan and that BMED has guaranteed it will provide reimbursement in any instance in which it is found not to be identical. He also noted that the borough will have one agent who will answer employee questions and handle claims. Councilman Joseph Kelly explained that the reason BMED can provide the cost savings to the borough while providing the same benefits as the state plan is that the BMED plan gives the borough credit for its specific claim experience, which is less than the average experience used in the state plan. “This is a real value,” Kelly said, “and I believe it is a good program.” The council had planned to make this change in March, but employees voiced concerns. Those employees included representatives of the American Federation of State County and Municipal Employee union, which represents many borough employees, and the Policemen’s Benevolent Association, which represents the police department. The employees urged the council to delay any action until they could analyze and compare the plans and investigate the experience of other towns that have agreements with (continued on page 19)