New Jersey Township Saves Over $100,000 While Enhancing Health Benefits with The Difference Card
When a New Jersey township was faced with a steep 17% increase in health insurance premiums, its leadership knew immediate action was needed to protect both taxpayers and municipal employees.
This public sector employer, covering 30 members through Horizon Blue Cross Blue Shield of New Jersey, was paying over $700,000 annually for employee health benefits. The proposed renewal would have increased total premium costs to over $850,000 – $150,000 spike that was neither sustainable nor justifiable to constituents or union stakeholders.
Leadership Takes Action
Rather than accept the renewal as-is, the mayor and town council challenged their trusted insurance advisor to find a smarter solution – one that would reduce costs while maintaining, or ideally improving, the level of benefits offered to municipal employees.
The advisor conducted a thorough review of the township’s current dual-option health plan structure. At the time:
- 50% of members were enrolled in the Direct $10 plan, offering low copays ($10 office visits) and a modest $400 out-of-pocket maximum.
- The other 50% were enrolled in the Direct $15 plan, which had slightly higher copays and a significantly higher $7,560 out-of-pocket maximum.
A Smarter Plan with The Difference Card
Working closely with The Difference Card team, the consultant explored ways to strategically reduce fixed premium costs while enhancing the employee experience. The team proposed a creative solution:
- Move all members to a higher-deductible health plan with increased copays—an intentional shift designed to significantly lower fixed premium spend.
- Implement a Difference Card MERP (Medical Expense Reimbursement Plan) to rebuild and enhance the employee benefits experience.
This redesigned plan lowered the township’s fixed premium cost by 25%, generating $160,000 in savings. A portion of those savings was strategically reinvested to fund the MERP, which reimbursed employees for key healthcare expenses – effectively shielding them from the higher deductibles and out-of-pocket costs introduced by the new plan.
The Outcome: Savings + Stronger Benefits
By leveraging The Difference Card’s innovative funding platform, the township achieved a net savings of $110,000 annually – a major budget win for municipal leadership and taxpayers alike.
Even more importantly, employees received better benefits than under the original plan designs. The Difference Card solution preserved access to care, minimized financial burdens on members, and upheld the township’s commitment to delivering high-value public sector benefits.
Why It Worked
✅ Strategic Plan Design: Premium reduction through higher-deductible plan paired with a customized reimbursement strategy.
✅ Employee-Centric Approach: Maintained or enhanced benefits despite plan design changes.
✅ Fiscal Responsibility: Reduced burden on taxpayers while preserving quality healthcare access for township employees.
The Difference Card is proud to support public entities like this New Jersey township in finding smarter, more sustainable ways to manage healthcare costs while delivering better outcomes for all stakeholders.
Want to learn how we can help your municipality or public organization save money and improve benefits?
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