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Union City Council conditions switch in health insurance on termination-cost cap
Summary
Council approved a conditional motion to switch from Benecon to Municipal Benefit Services for employee health coverage if termination costs do not exceed $42,000; the borough projected annual savings of about $13,730 but two councilors recorded abstentions.
Union City Borough Council voted Oct. 7 to conditionally change its employee health insurance provider to Municipal Benefit Services (MBS) for 2025 if estimated termination costs for the existing plan would not exceed $42,000.
Borough Manager Cindy Wells and Councilor Brian Osborn reported they met with Municipal Benefit Services and expected new rate information on Oct. 15, 2024. Manager Wells said the switch could save the borough an estimated $13,730 per year. The council motion authorized the change for 2025 provided termination costs would not exceed $42,000; Councilor Osborn moved the motion and Councilor Steadman seconded it. The minutes note Riley Cross and James Kerns abstained from voting; the motion is recorded as carried.
The minutes do not specify the current plan's run-out costs, the final MBS rate, or the date the council would receive the Oct. 15 estimates. The motion conditions the change on the termination-cost threshold rather than executing an immediate provider switch.
