Ridgewood narrows 2026 insurance spike after employees adopt 'difference card' plan

Ridgewood Village officials told the council on Feb. 2 that a rapid change to employee health-plan enrollment last autumn substantially reduced an otherwise much larger jump in 2026 group insurance costs.

Village Administrator Keith Kaczmark said administration ran a short open-enrollment ‘sprint’ and 178 employees moved to a high-deductible plan paired with an administrative “difference card” that covers employees’ out-of-pocket copays and deductibles. “By doing that, we were able to bring that increase down from $3,000,000 to $1,100,000,” he said.

The reduction still leaves a large increase because retiree premiums are unaffected by the difference card. Officials highlighted a 32.1% rise in retiree premiums between last year and this year that contributes roughly a million-dollar portion of the overall increase. Kaczmark said the difference card program does not currently extend to retirees because of administrative complexity and the dispersed nature of retired enrollees.

Finance staff added context for the council: some of the bigger drivers in the village’s projected insurance costs are structural and not unique to Ridgewood. Bob in finance said debt-service and other obligations add pressure on the tax and operating side, and noted that the pool of enrollees in state and regional health plans has shifted after prior rate shocks.

Union leaders and the village’s seven bargaining units agreed to the fast enrollment change, Kaczmark told the council, and the administration acknowledged the effort relied on union cooperation. The village is continuing wellness and outreach programs intended to reduce claims over time.

Officials also said there is uncertainty about how state-level decisions may affect rates mid-year. Kaczmark said administration is monitoring possible state actions and potential spring open-enrollment options.

What’s next: the council asked staff to continue outreach to employees and to monitor retiree premium trends and any state actions affecting the health-benefits pool. Administration said it will report updated figures if the state announces changes to the health-benefit programs.