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October 24, 2011

Re:      State Health Benefits Open Enrollment - New Plans Available

Dear Mayor:

The State Health Benefits Program Committee has approved new plan designs that will be available during the current open enrollment period.  Open Enrollment began on October 17, 2011 and continues until November 11, 2011.

The current NJ DIRECT and HMO plans available through the State Health Benefits Program will still be available in plan year 2012.  In addition several other plan options are also available that provides a lower cost premium deduction in exchange for a slightly higher cost-sharing when services are received as well as High Deductible Health Plans.

If an employee chooses a High Deductible plan the employee can participate in either a Health Savings Account (HSA) or Flexible Spending Account.  A HSA is a tax exempt trust or account that is set up to reimburse certain medical expenses you incur.  A HSA contains a $300 employer contribution which is accessed via a debit card that can be used for medical and prescription expenses.  An employee can make voluntary contributions to their HSA account through payroll deductions, which is pre-tax. Unlike a Flexible Spending Account, funds in the HSA will carry over year to year. 

A plan design comparison chart for active municipal employees is available at

The Division has also posted a Percentage of Premium Worksheet to assist employees in calculating their approximate payroll deduction for health benefits.  The worksheet is available at

Rates for local employers for Plan Year 2012 are available at

We will continue to keep you posted as new information is released from the Division of Pensions.

Very truly yours,


William G. Dressel, Jr.
Executive Director



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