Controversial Health Benefits Plan Approved for Town Employees

After discussions between the council, mayor, administrators and health benefits representatives, both resolutions regarding health and dental benefits for township employees were passed unanimously on Monday. 

One resolution awarded the contract for health benefit insurance services to Insurance Design Administrators (IDA) and the second awarded the contract for employee dental insurance services to Delta Dental of New Jersey, Inc.

Among the questions raised by the council and administration were the effects to taxpayers, the township and township employees. If the contracts were not renewed Monday night, the township would have no in-network doctors nor excess coverage for claims above $125,000 as of Jan. 1.

This issue was continued from last Tuesday’s council meeting during which Graham presented a power point presentation. The issue was tabled when no one seconded Councilman Michael diPierro's motion to pass them. 

This action became controversial when Mayor Jamie Barberio sent a letter to the Parsippany council saying that he "was shocked and appalled when the Township Council failed to take action on these contracts, the effect of which is to discontinue health and dental benefits for all Township employees effective Jan. 1, 2014.” He specifically called out Councilmen Jonathan Nelson and Paul Carifi, who in turn responded by saying that the mayor is “lying” and that his threats are “hollow.”

Here’s a look at what they had to say at the end of the meeting:

Carifi said he wanted to table the issue during the last meeting for more time to understand the resolutions and their effects on the township employees and taxpayers. “With the magnitude of that contract, it think we need to look at it for more than five minutes. We’re talking about anywhere from $9-plus million to $13-plus million,” he said.

“I did not want anything to happen to any of our township employees’ benefits,” added Carifi.

“I’m just glad it passed,” said Barberio. “The council did the right thing for the residents of Parsippany and the township. We had a discussion and dialogue tonight and it went well. I wish this was the way that it could have gone in the very beginning, but it didn’t. But it’s resolved and everything is in place now, so I appreciate the council’s decision on it.”

“This is what happens when you try to rush things. This should have been done in October, not at the 11th hour,” said Nelson. 

The timing of the contract renewal being so close to the Jan. 1 deadline was an issue with some council members as well as those from the public that came to speak on the issue. 

“Why is this being pushed at this time?” asked resident Pat Petaccia to the Township Council.  “Seems like this kind of stuff should have been handled a couple months ago … your loyalties are to the township and to the town employees. You’re elected officials. I expect you to know what’s going on with everything.”

Barberio said that ample time was given to the council to review the presentation.

“Last week’s meeting, Councilman Carifi and Nelson stated that they needed more time, but they received this presentation on Dec. 10,” said Barberio, during the meeting. “I don’t know why they wouldn’t look it over or … reach out to administration. We’d be more than happy to answer any questions. So now we’re at ground zero. It’s either yes or no.”

Nelson said that the information is complex, important, and should have been presented at an earlier date. He added that he had reached out to Jasmine Lim, the townships business administrator, but she is currently out on medical leave.

Barberio added that the Dec. 10 meeting was canceled due to weather, but Nelson later said that an issue of this importance needs to be discussed and looked at several months in advance.

“This is a very complicated process. I think it’s very important to review it … the sentiments of the employees and the taxpayers have been said very clearly tonight,” said Paula Cozzarelli, assistant business administrator. “Without a contract in place, the township does open itself to unnegotiated network rates and no excess coverage. I think that’s the priority to be focused on tonight.”

Also, Nelson brought up that last year, the township passed a resolution before January, but didn’t sign the paperwork until the end of January.

“We received notification from the town that they were renewing as of Jan. 1,” said IDA representative Mike Atkinson. “Even though we may not have had all the paperwork properly signed, the insurance carrier was notified and they accepted the verbal approval of the renewal and the resolution.”

Another concern was the broker’s commission. Roughly, Fairview Insurance gets $20,000 per month and their responsibility is to research and review proposals for third party administrators to process health benefit claims for the township. Fairview then presents their findings to the township annually and in this case, IDA was recommended by Fairview.

Check back with Patch for more on this issue.