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Council conditionally approves potential health-insurance switch pending termination-cost review

Union City Borough Council · October 7, 2024
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Summary

Council authorized switching employee health coverage from Benecon to MBS for 2025 provided termination/run-out costs do not exceed $42,000; the change is estimated to save about $13,730 per year. Riley Cross and James Kerns are recorded as abstaining.

Council approved a conditional motion to change the Borough’s health insurance provider for 2025 from Benecon to Municipal Benefit Services (MBS) if the estimated termination (run-out) costs would not exceed $42,000.

Manager Cindy Wells and Councilor Brian Osborn reported the switch could save approximately $13,730 annually; the council will receive rate information on Oct. 15 and an estimate of run-out costs before any contract is finalized. The minutes record that Riley Cross and James Kerns abstained from the motion; the motion text indicates approval subject to the termination-cost cap.