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No.
05-31
Date of Adoption January 13, 2005
URGING THE GOVERNOR OF THE STATE OF NEW JERSEY TO
INVESTIGATE HORIZON BLUE CROSS AND BLUE SHIELD FOR
MISCONDUCT IN THE SETTING OF RATES FOR HEALTH INSURANCE
COVERAGE FOR MUNICIPAL GOVERNMENTS
WHEREAS, the Borough of Carteret ("Borough") had previously provided medical and
hospitalization insurance coverage to its Municipal employees through Horizon Blue
Cross and Blue Shield ("HBC&BS"); and
WHEREAS, the Borough's medical and hospitalization program through HBC&BS was
set to expire on December 31, 2004; and
WHEREAS, HBC&BS originally offered the Borough a renewal rate for 2005 which
was approximately $ 1.1 million dol1ars higher than its existing premium; and
WHEREAS, the above increase reflected a forty five (45%) percent increase above the
existing premium with no increase in benefits; and
WHEREAS, when HBC&BS was confronted with the prospect that the Borough would
not renew its medical and hospitalization coverage with HBC&BS for 2005, it reduced
the proposed increase by approximately three quarters of a million dollars, for a net
increase of just over two hundred and fifty thousand dollars; and
WHEREAS, the Borough believes that such a drastic reduction in the final proposed
premium increase reflects questionable rate setting practices by HBC&BS.
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND THE
BOROUGH OF CARTERET as follows:
1. That the Governor and State Legislature should initiate a through
investigation of the rate setting practices by HBC&BS for New Jersey's
municipalities.
2. That a copy of this Resolution be forwarded to the Honorable Acting
Governor Richard Codey and to Senator Joseph Vitale and Assemblymen
John Wisniewski and Joseph Vas, US Attorney for New Jersey, the Attorney
General for the State of New Jersey and the Insurance Commissioner, State of
New Jersey.
Adopted this 13th day of January, 2005
and certified as a true copy of the
original on January 14,2005.
KATHLEEN M. BARNEY, RMC/CMC
Municipal Clerk
RECORD OF COUNCIL VOTE
COUNCILMAN YES NO NV A.B. COUNCILMAN YES NO NV A.B.
BELLINO X NAPLES X
DIAZ X RIOS X
-.
In¡ illl X SITARZ , X
x - Indicate Vote AS.- Absent NY - Not Voting XOR - Indicates Vote [0 Overrule Veto Cp
,
Adopted at a meeting of ¡he Munjcipal Council , .-----/- J an_uag 13, 2005
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