Parsippany switching health providers to trim budget

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The city council of Parsippany, N.J., has voted unanimously to switch its municipal employee health care coverage, saving $668,000 in the process.

symbol-goldThe council voted to switch from Horizon Blue Cross Blue Shield of New Jersey to CIGNA, starting in January 2010, according to the Daily Record (Parsippany, N.J.).  CIGNA’s bid for next year was $7.1 million, $668,000 lower than that the offer from Horizon, according to the newspaper. The bid was submitted by Connecticut General Life Insurance Co, a CIGNA subsidiary, based in Bloomfield, Conn., and was the lowest of six bids. The bid also gained the support of Parsippany’s mayor, Michael Luther.

The city’ business administrator said the city plan covers 420 employees and 100 retirees.

Parsippany selected Horizon as its provider in 2007, after switching from the state health benefits plan, in a move that had benefits including reducing costs and eliminating coverage for its city council members, the report said.

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