can hear. You're good to go. >> Yes. Can you hear me? >> Yep. >> Yes. >> Okay. >> Hello, Bill Robertson. How are you? >> Hello, Mayor. I'm good. Thank you. >> We're good, Ryan.
>> Yep, we're all good. >> Good evening, ladies and gentlemen. Welcome to our Denel Burough public meeting. uh special meeting of October 29th, 2025. Our first order of business is a call to order and the rise and pledge of allegiance. So
al together I pledge allegiance to the flag of the United States of America. >> And to the republic for which it stands, >> one nation under God, indivisible, with
liberty and justice for all. Uh item number two on the agenda is the reading of the sunshine statement and roll call by our municipal clerk, Mrs. Warren Stats. >> This special meeting of the Denellan Burough Council held on October 29th, 2025 is called pursuant to the
provisions of the open public meetings law. Notices of this meeting were sent to the Courier News and Star Ledger on October 22nd, 2025. In addition, copies of the notice were posted on the official Denellan website and public bulletin board on North Avenue on
October 22nd, 2025. Notices on the bulletin board and website have remained continuously posted. >> Mayor Sento, >> present. >> Council President Sigman >> here.
>> Mrs. Albertson >> here. Mrs. Lance >> here, >> Mrs. Rios >> here, >> and Mr. Scott >> here, >> and Mrs. Vandermark >> here.
>> Well, officially welcome, Councilwoman Vandermark, and congratulations and uh welcome to the team and we're looking forward to working with you, Councilwoman Vandermark. Um, >> thank you. >> Item number item number three on the agenda is
presentations. We have a presentation on HIF health benefits by Joseph Albahani uh from our capital health benefits professionals who help us with our health insurance. Um tonight's discussion is about the bureau of Denellan leaving the state healthcare
benefits plan after um many years of increases. uh uh one uh last year was 22%, this year 36. Next year it's supposed to be projected to be 36 and then the following year is 50%.
Um basically in effect almost a 200% increase if we were to stay in the health care underneath the state plan. Um and so uh Danellen, it was one of the many towns throughout the state who was in the plan that were looking on how we can get out of the plan. and Joseph's
here tonight to um talk to us about our options of joining a HIF. Um there's a lot of historical reasons behind uh why the state healthcare benefit plan is where it's at. Um and I I think people can just look into the history of it and
see how it's playing out even up into this current election season. Um and the future fate of it, what they're calling a death spiral. and my role as the president of New Jersey Conference of Mayors, we've been looking at this closely. Um, and working with the governor's office and legislature, which
I will say from my view in that position. Um, they ain't doing nothing. Um, so leaving towns like us across the state to have to make our decisions on where to go. Um, so Joe, I'm going to hand the floor to you. Hopefully that
was a nice introduction for you, my friend. >> I appreciate it. Thank you, Mayor. and welcome everybody. I I know sometimes it's uh late nights for all of us but uh I think this is a very important subject and you know I always kind of lead you
know with these health benefits you know what are your options you know obviously you know we have different options but you know as the mayor just said look what the state has been doing you know I'm just going to give you a 4year rate
history right in 2023 the state went up 23% % in 24 it went up 7.7 in 25 16 126 we already know the number 36.5%.
These are crazy numbers. We uh Eric Murtha, who's on this call, uh we went to a meeting a couple weeks ago and the state treasurer was there and he's projecting in 2027 another 39%.
2028 50% increase in 2029 60% increase. Numbers are just out of control. Uh unsustainable. Not only burrows and townships can't afford it, you know, the members can't
afford it. These are just crazy crazy numbers. You look on the other side, what is the HIF? What have they done? You know, you look at 2023, they were basically break even minus.18%.
The state was up 23, they were down or break even. In 24, they went up 5.14. 25 9.52. They haven't officially announced, but we're hearing about a 16% increase uh
for 2026. So, you know, when you look at just that, you know, the the three-year average, it's 4.82%. All right. So, a lot different than a 20.92% average, you know, on the on the state
health benefits. So that's just giving you a little background on what's what's happening. So what did we do? We went out to all the different carriers. We went to Horizon Direct, Sigma, United Healthcare, Etna. We went to the Perma Hif, which uses Etna. And then we went
to the New Jersey Blue Solutions HIF, and they gave us a quote. Now, you know, in the past year and a half, Denellan's been with the difference card and Alex can, you know, probably tell you
over the first year, we saved about $141,000. Not bad, right? The projection was 131, but you actually saved a little bit more. So, what does that tell you? Whenever we see that, that means your claims have come down. So once we saw
that, Alex, the mayor and I and Eric, we we got together and we said, "Hey, look, claims have come down. Maybe we should go out and get new quotes." So we did that and again the the Blue Solutions, New Jersey Solutions came in with a what
we feel is a great proposal. So still have the difference card. Everybody's still in that 2035 plan. we would just come over to the uh the HIF the health insurance fund still using the difference card and everybody's
staying in that 2035 plan. So, here's what the the HIF basically proposed, right? Um, you know, it's a 12-month rate, January 1st to December 31st. It's an equal to or better. So, every
plan is going to be matched up. So, again, everybody's in that 2035. It's going to be exactly the same. Same doctor, same hospital, same network, still with Horizon. Nothing changes for all the members except the premium. premium is going to come down. So, when
we look at here's the equal to or better letter that they issue, they're going to match all the benefits uh for the burrow. This is probably the page you want to see. So, can they already see that? Is
it too small or is everybody okay with it? On the left hand side is the state health benefits for all your activives early retirees. Right? You can see what the in 2026 the annual premium is going
to be 1,58,835 or $125,736 per month. when for the retirees on Medicare, you can see what the premium is going to be come January. $103,44
or $8,587. If we move over to the New Jersey Solutions HIV, look at the numbers. It's going down to 1 million 175. Exact same plan, same network, same doctors, same hospitals. You know, I know I'm repeating myself,
but everything remains the same. We're just coming out of the state health benefits. It's going to be a minus $333,627. That's a minus 22.1%. For the retirees, they actually get a better plan. You're going to leave Etna,
go into Horizon, right, into Medicare. Uh, but there's zero co-pays. Right now, they pay a $10 co-pay for the doctor, $10 for the specialist. They have a um a small deductible of $257.
All that goes away. Everything's going to be zero. So, they're actually getting a better plan with Horizon. Still Medicare. Um, so that's a minus 7.3 small savings, 7,548. But if you look at it, combine it, it's
a $340,000 savings. And don't forget, we already saved 141 last year, right? So, you know, you kind of add that, you're getting close to that half a million dollars within a 2-year period. >> I just want to clarify record. Sorry,
Joe. >> Yeah, >> the 300 somehat thousand savings. It's not that we now have that in our budget. It's just that's the decrease below what the actual increase would have been. So there's still an increase. It's just it's not the
36% increase. It's the 16% increase. >> Yeah. So this is minus 22. So if you do that math, 36 and a half, >> you're still looking at a 14% increase over 2025. >> Correct. I just want to clarify because just for the record in case public
thinks that that's how much we're now saving in our budget. Got it. Just want to make sure that's >> Yeah. And the only reason I'm putting 2026 rates here is because this doesn't take effect until January 1st, 2026. So, it's the right way to compare it.
But you're absolutely right, mayor, that um it's a 14% roughly uh increase over the 25 rates. Yeah. Any questions on this before I move forward here? Okay. So
there's your savings from 26 increase from 25. Here's the plans, right? So even if you know someone wants to go back to, you know, direct 10, we're going to match all plans. Everybody's in
the 2035. We're just matching the plans exactly. So there's no change in any of the plans. Exactly what the state is offering. So is the HIF. Here's the Medicare. As I was saying before, on the left hand side is Etna,
where they currently are. There's a $10 co-pay. If you look over on the Horizon Medicare plan, zero co-pay. $10 for a specialist, zero for a specialist. Everything's covered at 100%.
Uh if you look at the Etna, if you go to the hospital, it's payable at 100% after this $257 deductible. Horizon doesn't have that. Everything's paid at 100%. The RX improves a little bit. You know,
instead of generic brands, instead of $7 co-pay, it's six. Brand name $21 co-pay, it's 12 type of thing. So, a little bit better on the brand name and the generic. It is $3 more for anything
that's nonformulary, any new drug on the market. Um, it's $24 on that side of it, but the premium is is lower. Still using the difference card. We're not going to change the difference card. We're still going to let the members use
the difference card. Stay in the 2035. But again, we're just looking at lower premiums for all the members. So here's your single person. Here's your Horizon Inside the State
Direct 2035 plan. This number here is the total monthly premium, 1745. Depending on your salary, this is how much they would contribute. But since we're going to move over to the HIF at a
lower premium, right, it's going to go from 1745 down to 1310 per month. Well, that means all the members put money back in their pockets. And I have that chart whether you're
member spouse, parent, child, you know, if you look at the family, right, on the 2035 plan, you know, somebody making, you know, contributing 35%, that's $786
per paycheck. Well, now they're going to drop down to $590 for the exact same plan. So members are going to save. Obviously the burrow is is saving. Um and then also no out of
pocket expense for all the members on the medical side because they still have the difference card. So I'm going to stop there. Open it up for questions. Um anything that
you know you want to know, please ask. Joe, could you just uh confirm once we're in the H that we stay in the H? So if our claims go up >> Yeah. So they won't pick you out. So if the claims go up, you got to remember how the HIF works. Kind of like the
state in a way they're going to the first year they're going to give you this rate. All right. Because you're just coming in. So once you become a member of the HIF, you're in the HF. So if your claims happen to spike again, they're not kicking you out. You're in
the HIV, right? And they aggregate all the claims. So what they're going to do is, you know, Plansboro, Pennington, you know, just to name a few, Madawan, whoever, everybody that's in the H, they're taking all the claims and they're aggregating them all together.
So if one is running high, another is running low, you're kind of meeting in the middle on the claims data. Does that make sense? It's not just based on Denellan anymore. It's going to be based on everybody.
>> And and obviously that if you're in the H, you got pretty decent with claims. So you're in with a good group of people. So because they just don't let anyone anxious. Can you just let council know how many how many people applied for this if and how many people got in?
>> Yeah. So pretty good story here. Uh so 125 municipalities applied to go into the HIV. 10 were accepted and Denellan's one of the 10. So they are very picky on who they let
in which is good if if Denellan decides to go into the HIF. That's good to know because they're going to be very selective on who they bring in. They're not just going to take everybody and all these high claims and then all your rates go up, you know, skyrocket just like the state is doing. You got to
think about what happened to the state. Anybody with good claims have left. They're all they're all gone. they they left went private, went to the HIF, wherever they went. Anybody that's left in the state are the really the higher claims, the
bad claims. And that's why you're seeing these rates go up and up and up. Also, the infrastructure of the state health benefits, especially on the local government side, the infrastructure is not strong right now. They actually borrowed $200 million from the state
workers plan in order to keep the local government and the teachers union afloat, but that's got to be paid back now. So that's part of that 36 12% increase and is paying part of that, call it a loan back. The recommendation
for 2026 was a 63% increase. That was the recommendation to go up 63% come January. They settled on 36 and a half. So what do you think's going to
happen next year in the following year? You saw the projections of what the the state treasurer, you know, said where it's going to go. It might be even higher than those numbers, which again are unsustainable. >> Last thing, Joe, what was what has our
increase been the last four years? I'm sorry. Say it one more time. >> What is our increase have been percentage-wise the last four years? 80% 83%. >> The the the chart that I had up before. >> No. What what is our increase over the
last four years? >> In the state. >> I'm sorry. From the state. >> Yeah. >> From the state, Alex. >> Yeah. >> Yeah. So, the increase in 2023 was 23%. 24 was 7.7.
256 and a half and then obviously 26 is going to be 30. Is that what you're asking or did I miss that? >> That's a lot. >> Okay. >> And the dollar values doubled, right? We went from almost 600,000 to now over a million. >> You're right. >> Yeah. You're going to be at 1.5.
>> Yeah. >> Yeah. >> Come January. That's a lot. It >> is a lot. Yeah. Um Yeah. I had that number. Yeah. Right here. Yeah, you jumped up. It was below a
million, right? Take 36 and a half% off of that 1.5, you're at like nine something. Yeah, you were below a million. So, yeah, it's uh in fact, I can give you the exact number where you were.
Uh 1508 835 and 63.5. Yeah, you were at 958,000 before this 36 and a half%. So, yeah, it's uh
it's crazy numbers and it's only going to get worse. But again, for all your employees, all the members, no change in network. You're still with Horizon. um
nothing changes for them. Just putting money back in their pockets and obviously saving the burrow a good dollar amount. >> Now Joe, forgive me if this is in your uh presentation already, but can you
talk about the the reasoning behind it? Well, ultimately why we're having a special meeting tonight and the time frame in which we have to do all of this. Sure. >> So, in order to get into the HIP for January 1st, um you have to be on the agenda for the
October 30th agenda to be accepted into the HIF for January 1st. Also, the state requires a 60-day notice in order to get, you know, to leave the state. So, there's a resolution that has to be uh
done uh in order to leave the state health benefits and you have to give them 60-day notice that obviously is by Friday. Um so that's why you know the mayor and Alex called this special meeting uh so that you can put that
resolution through if you decide to move to the HIF. But if you miss it by a day, the state will not they there's no flexibility with the state. If you give them the notice on November second, November 3rd, I think you're
having another meeting on November 3rd. If you did it then, you have to wait till February 1st. So that means you're taking the increase for one month and then move on February 1st. So, the reason why we're we're having this
special meeting is to try and get it for that January 1st if everybody agrees to it. >> That answer your question, mayor. >> Yes, sir. Thank you. >> Thank you. >> Any other questions I can answer or um
any clarification that you need? No, not on my end. Council legal >> questions, sir. >> Council members, anything? >> Nothing from me. Mayor, >> nothing on my end. He answered the big question of equal to or better, so we're
covered there, >> sir. >> Nothing on my end. And Joe, you you have met with union representation to make sure that they were comfortable with the equal to and better. >> Correct. >> Okay. >> Yeah, we met with everybody.
>> Okay. I mean, if there's no further questions or discussion on this presentation, then uh Joe, if you want to hang on and just uh sit through the resolution in case anything else comes up in questions during resolution, uh we can go back to our our agenda.
>> Thank you, Joe. Great work. Thank you, >> Alex. You too. >> Thank you, mad. >> And uh Joe, I'll just say for a tidbit, one would argue they should just give us a $200 million loan forgiveness on that side because uh they've already been they've artificially been decreasing the
state side of healthcare benefits while reasing it. Uh so one one could argue I would say we've already been paying it because they've artificially lowered the state's employees, but I'll leave it there. Um, okay. Number four on the agenda is
resolutions. We have items number 368 through 371. Uh, Mrs. Stats, our municipal clerk, will read through the resolutions and give mayor and council an opportunity to discuss them as, uh, they are opened. >> Resolution number 368 is authorizing the
burrow of Denellan to join the New Jersey Solutions Joint Health Insurance Fund. >> Move. Second segment. Rio segment. >> Mrs. >> Yes.
>> Mrs. Lance. >> Yes. >> Mrs. Rios. >> Yes. >> Mr. Scott. >> Yes. >> Mr. Sigman. >> Yes. >> Mr. Sigman. Yes. Okay. And Mrs. Vandermark. >> Miss Vandermark. Can you repeat that
again? >> Yes. >> Okay. >> Congratulations on your first vote. >> Resolution 369 is authorizing the termination of burrow membership in the state health benefits plan. >> Move it. Segments.
>> Second. Rios. >> Mrs. Albertson. >> Mrs. Lance. >> Yes. >> Mrs. Rios. >> Yes. Mr. Scott, >> yes. >> Mr. Sigman, >> yes. >> And Mrs. Vandermark,
>> yes. >> Resolution 370 is to terminate all participation under the SHBP and SHBP, including prescription drug plan and or dental plan coverage.
>> Move it, Albertson. >> Second. >> Who was the second? Scott. William Scott. >> Mrs. Albertson. >> Yes. >> Mrs. Lance. >> Yes. >> Mrs. Rios. >> Yes.
>> Yes. >> Mr. Sigman. >> Mr. Sigman. >> Yes. >> And Mrs. Vandermark. >> Yes. >> Resolution 37. You can officially say
good riddens. >> Yeah. >> Resolution 371 is to approve deli cream for a food handling license for the 2025 2026 licensing year. >> Move it. Segment. >> Second. Albertson.
>> Mrs. Albertson. >> Yes. >> Mrs. Lance. >> Yes. >> Mrs. Rios. >> Yes. >> Mr. Scott. >> Yes. >> Mr. Sigman. >> Yes. >> Mrs. Vandermark.
>> Yes. >> Okay. Uh, we do not have council discussion or council reports this evening. We will save them for our next meeting in November. At this time, we'll open the floor to the public for any comments or questions. We just ask that you please state your name and residency.
Without hearing any, we'll close that portion of the meeting to the public. Item number well the last item is uh resolution uh item number six on the agenda which is resolution 372 for German before we
motion and second and go into that. Uh our next council meeting is November 3rd uh at 7 p.m. hybrid. You can both show up at the council chambers or join us virtually like we did tonight. So, uh, can I have a motion and second for endermanment resolution 372?
>> Move it. Segment. >> Second. Rios. >> All in favor? >> I. >> Any nays? >> Okay. Good night everyone. God bless. >> Good night. >> Thank you everyone. Thank you.