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Council conditionally approves potential 2025 change in employee health insurance to save estimated $13,730

Borough of Union City Council · October 7, 2024
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Summary

Council authorized switching health insurance providers for 2025 if termination costs would not exceed $42,000; staff said the change could save an estimated $13,730 per year. Two councilors are recorded as abstaining on the motion.

Council authorized staff to change the borough’s employee health insurance for 2025 from Benecon to Municipal Benefit Services (MBS) only if estimated termination (run-out) costs would not exceed $42,000. The motion was made by Councilor Brian Osborn and seconded by Councilor Steadman; the minutes record Riley Cross and James Kerns as abstaining on the motion.

Borough Manager Cindy Wells told council members that new rate information would be available on Oct. 15, 2024, and that switching plans could save the borough an estimated $13,730 a year, though there would be a termination cost to account for. The motion conditions the change on run-out costs not exceeding $42,000.