Solomon says he’s cutting heath care costs, will save Jersey City $30 million

Jersey City Mayor James Solomon is about to save the city $30 million while cutting health insurance costs for about 5,000 city employees and retirees by roughly 8%, a significant victory in the affordability column after just eleven days in office.

Solomon is moving Jersey City’s medical plan from Horizon Blue Cross Blue Shield to Meritain Health with the Aetna provider network, a move he says will result in extraordinary savings.

“For too long, healthcare costs have eaten into the wages of working people while executives and shareholders profit. This change pushes back,” the newly-elected mayor said.  “You do the work that keeps Jersey City running, and you deserve to keep more of what you earn.”

He promised that no employee would see any changes in their benefits.

Your copays? Same. Your deductibles? Same. Your coinsurance? Same,” stated Solomon. “We secured an “Equal to or Better Than” guarantee in writing. Nobody is getting a worse deal.”

According to Solomon, health care contributions for city employees would have increased by almost 12% under Horizon, but the new plan will result in a reduction of up to $3,000 annually, depending on the tier.

“Here’s what that means in plain terms: you spend less money, the city spends less money, and your benefits stay the same or are better,” Solomon said.  “That’s it. That’s the deal.”

The new mayor promised that copays, deductibles, and coinsurance will remain the same.

“We secured an ‘Equal to or Better Than’ guarantee in writing,” said Solomon.  “Nobody is getting a worse deal.”

A complete evaluation of health insurance options found the Aetna network to be larger, wit 88.6% of current providers being in-network; Horizon’s number was 69.1%.

He promised city employees that doctors not in the Aetna network will be treated as in-network for twelve months during the transition, and pledged to honor all Horizon authorizations already approved.  Solomon said that deductibles will carry over.

Solomon told employees, “This is what a government that works for you looks like.”

“We found a way for the City to spend millions less while putting money back in your pockets and protecting your benefits. No gimmicks. No cuts. Just doing the work to find a better deal,” he said.  “Every day you have this city’s back. Now we’re working to have yours.”

The new health plan is effective on March 1.  The city’s dental plan remains with Horizon, and prescription drugs stay with Express Scripts.