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Union City council OKs conditional switch if termination costs for new insurer are acceptable

Union City Borough Council · October 7, 2024
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Summary

Council voted to change the borough’s employee health plan to Municipal Benefit Services for 2025 if estimated termination fees do not exceed $42,000; the switch is projected to save about $13,730 annually. Minutes note two abstentions and a contradictory 'carried unanimously' line.

Union City Borough Council voted Oct. 7 to change the borough’s employee health insurance provider for 2025 from Benecon to Municipal Benefit Services (MBS) provided that the estimated termination costs do not exceed $42,000. The motion, moved by Councilor Brian Osborn and seconded by Councilor Steadman, instructs staff to proceed if run‑out termination costs fall below the stated threshold. Manager Cindy Wells and Councilor Osborn had met with Municipal Benefit Services to obtain rate estimates.

Manager Wells told council an insurer change would save the borough approximately $13,730 per year if implemented. The minutes record that Councilors Riley Cross and James Kerns abstained from voting; the same paragraph also states the motion "carried unanimously," a contradiction recorded in the minutes. The council did not record a roll‑call tally in the minutes beyond the abstention note and the carried language.