The Lincoln Park, N.J., board of education approved ending its participation in the New Jersey State Health Benefits Plan, a first step toward obtaining new health coverage.

The move means active and retired school district workers will have their coverage under the state plan terminated in February, according to the Bergen County Record.

The school board will seek new coverage because the state plan, contracted through Horizon Blue Cross/Blue Shield, will increase in cost by 25% Jan. 1, 2010, an amount exceeding its budget for benefits, the newspaper reported.

The school board approved in August hiring IMAC Insurance Agency, a Belleville, N.J.-based firm, to find a more affordable alternative. That process, according to school officials, continues, with a new insurance provider expected be voted on at the board’s Dec. 15 meeting, with coverage beginning in February 2010, the newspaper said.