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Council hears proposal to lower employee health-care premiums with a "difference card"
Summary
A presenter from Cheney Financial proposed moving borough employees into a higher-deductible state plan and funding the deductible difference with a prepaid "difference card," projecting roughly $772,297 in 2024 employee-benefit costs and a first-year projected total near $660,000 (about a 14% reduction).
John Glidden of Cheney Financial presented the "difference card," a program that shifts employees from the borough's current state plan to an alternative (described in the packet as a $20/$35 plan) and captures premium savings in an HRA-like account to pay co-pays and deductibles with a dedicated card.
Glidden presented the borough's 2024 employee-benefit figure, saying, "If we took that $772,257 ... the cost would be $616,000. And the total costs after considering the claims for things like, the deductible would be $660,000.40. That is a 14% decrease overall in the costs of insurance premiums for the borough and the borough employees, for the 1st year." Council members asked how claim estimates are calculated, whether retirees were included (the packet did not include retirees), and whether the program exposed the borough to catastrophic claims. Presenters said the model uses sample statistics from similar groups and that employer exposure is capped (family MOOP cited as $7,500; individual $2,000).
Councilors also asked about employee impacts and enrollment; Glidden and his team recommended a council resolution to authorize proceeding with the program, followed by targeted education sessions and union outreach for police and DPW staff. There was no council resolution adopting the program at this meeting; presenters described the recommended next procedural step.
