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Council authorizes conditional switch of health insurer pending cost estimates
Summary
Council approved a motion allowing the borough to change employee health insurance from Benecon to Municipal Benefit Services for 2025 if estimated termination costs do not exceed $42,000; potential annual savings were cited at $13,730.
Borough Manager Cindy Wells and Councilor Brian Osborn reported on Oct. 7 that they met with Municipal Benefit Services about moving the borough’s employee health insurance from Benecon to MBS. Wells said the switch could save the borough approximately $13,730 per year but that changing plans would incur termination or run-out costs. Council approved a conditional motion to change providers for 2025 if estimated termination costs would not exceed $42,000; Councilor Osborn moved the motion and Councilor Steadman seconded it. The minutes note that Councilors Riley Cross and James Kerns abstained from voting and that the motion nonetheless carried.
The minutes record the financial figures and the conditional nature of the approval. The borough expects to receive rate information for the current plan on Oct. 15 and an estimate of run-out costs before any final administrative change is implemented. No contract award or termination paperwork was recorded in the minutes on Oct. 7.
