Officials in Millville, N.J., are hoping a switch in their health care provider can save $1.6 million or more as its shifts from its private insurance plan to a state-run health care plan.

The Millville City Commission voted unanimously Feb. 16 to make the move, but has run into resistance from employee unions who say the switch, when the private coverage expires, may violate their contracts, according to the Press of Atlantic City.

An attorney representing three local unions, including the police department’s employees, said the move violates collective bargaining agreements and state law and added that the city has failed in its obligation to negotiate the issues with the respective unions, the report said.

The city’s director of the revenue and finance department told the paper that no formal grievances have been filed by the unions, but the end result could be litigation against the city.

This year, Millville was facing a 28% increase in its health insurance premiums and a 58% increase in its prescription drug plan costs. It budgeted $4.3 million. The existing plan – through a private insurer not named in the report – would have cost about $5.8 million.