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Borough solicitor explains proposed change to health‑insurance purchasing agreement requiring 120‑day exit notice
Summary
The solicitor told council the borough's membership in a multi‑employer school‑district healthcare trust has worked well since about 2015 but a proposed amendment would require 120 days' notice to exit the trust; the change was prompted by a large member's late withdrawal last year and will be presented for approval at a future meeting.
The borough solicitor (Speaker 5) told council the borough has participated since about 2015 in a self‑insured healthcare trust run by area public‑school districts and said the trust has generally been "very well run." He introduced a proposed purchase‑agreement extension that, if approved, would require municipalities to give 120 days' notice to exit the trust.
"If you wanna get out of the trust, you have to give them 120 days or you lose whatever savings you might have with us," the solicitor said, explaining the change was prompted when "a large municipality in Delaware County" withdrew late last year and forced the trust to revisit rates for remaining members.
The solicitor said the provision is intended to prevent short‑notice departures that can shift costs to remaining participants; he described the trust as a pooled, self‑insured arrangement that hires an administrator and buys excess insurance, and contrasted that with traditional municipal plans. He also noted the trust had not raised rates for several years prior to the recent change.
No formal vote was taken at the caucus; the solicitor said the proposed extension will be brought to the accounts/regular council meeting for consideration and potential approval.
