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Council approves conditional switch of employee health plan if termination costs are acceptable
Summary
Council authorized switching employee health coverage to a new provider for 2025 if termination costs do not exceed $42,000; estimated annual savings for the borough are $13,730. Two councilors are recorded as abstaining.
Borough Manager Cindy Wells reported preliminary analysis from Municipal Benefit Services indicating the borough could save an estimated $13,730 per year by changing employee health insurance from Benecon to Municipal Benefit Services (MBS). Wells said the new rate information will be available Oct. 15 and provided an estimate of potential run-out (termination) costs.
Councilor Brian Osborn moved and Councilor Steadman seconded a conditioned motion: change health insurance providers for 2025 only if the estimated termination (run-out) costs would not exceed $42,000. The minutes record that Riley Cross and James Kerns abstained on the motion; the motion was recorded as carried in the meeting minutes. No final enrollment or vendor contract was executed at the meeting pending the Oct. 15 rate data.
