A new audit has found that New Jersey towns could save a lot of money by joining the state’s health plan.
State Comptroller Matt Boxer says local governments in the Garden State could save more than $100 million each year by switching to the State Health Benefits Plan.
Some local governments are wasting money on broker fees for private insurance carriers, Boxer said Tuesday.
“In some instances, there’s a history of working with these brokers who are not presenting the state plan as an option because in part they don’t have an incentive to do that,” he said. “They don’t make any money by sending clients to the state plan.”
Union contracts prevent some towns from joining the state plan.
There are other plans that can address the needs of public employees at rates lower than the state plan, according to Bill Dressel, executive director of the New Jersey League of Municipalities.