Millville, N.J., officials have renewed a contract with their long-time insurance broker, Allen Associates, and will switch to a new health care benefits provider for city employees.

By a 5-0 vote, the Millville City Commission voted March 16 to remain with the Vineland, N.J.-based firm through a one-year contract with a one-year extension clause, according to The Daily Journal newspaper.

Richard Allen, a partner with Allen Associates, told city officials there are a few issues to resolve regarding the health provider switch, which takes effect April 1. The city will switch from Horizon Blue Cross Blue Shield to New Jersey government’s Health Benefits Plan, a change expected to save $1.6 million in annual premium payments, according to the report.

Horizon is the underwriter for the state health plan, so the change will not be that extreme, Allen told city officials.

The city expects to spend nearly $4.2 million on insurance premiums in fiscal year 2011, according to its department of revenue and finance.