$700K Savings from Health Care Switch, Cherry Hill Officials Say

Facing the possibility of a 39-percent increase in health plan costs for Cherry Hill township employees, making a move to a new provider will hack off $700,000 from next year’s bill, township officials said.

Aetna, the township’s former provider, would’ve hiked the township’s costs from $4.2 million up to $5.7 million, officials said. Moving to Amerihealth still means a substantial increase—the new bill will rise to $5 million—but doesn’t hurt coverage for employees, officials said.

“It’s going to be the same level of benefit,” said Lenore Rosner, the township’s business administrator.

The switch comes amid a move to a new insurance broker, as well—the township solicited bids from four brokers, but only got an answer from one: Conner Strong and Buckelew, the agency run by Cherry Hill resident and Democratic power broker George Norcross III.

Restrictions on the broker mean there won’t be any fees lumped in on top of what the township agreed to in what it specified, Rosner said, which should also help keep costs down.

“Everything has to be fully disclosed,” she said. “Any other rebates or discounts will be coming back to the township.”

Mayor Chuck Cahn credited the township’s unions for being willing to work with a switch in the health benefit plan, saying it wouldn’t have gotten done without work by all sides involved.

“I think we came away with a very fair and equitable contract,” he said. “In the end, it will serve us all well.”