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Union City considers switching health insurers if termination costs stay below $42,000

Union City Borough Council · October 7, 2024
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Summary

Council authorized a conditional change of employee health insurance for 2025 if estimated termination (run-out) costs would not exceed $42,000; borough staff said a switch could save about $13,730 a year.

Union City Borough moved Oct. 7 to change its employee health insurance provider for 2025 if estimated termination (run-out) costs would not exceed $42,000. The motion (by Councilor Osborn, seconded by Councilor Steadman) was recorded after Borough Manager Cindy Wells and Councilor Brian Osborn met with Municipal Benefit Services for rate information.

Wells told council the borough could save an estimated $13,730 per year by switching from Benecon to Municipal Benefit Services (MBS), but that there will be termination costs and that staff would receive rate information on Oct. 15, 2024. The minutes note that Riley Cross and James Kerns abstained from the vote; the motion is recorded as carried. Council did not record the precise run-out estimate at the meeting.