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Council leaves open a potential 2025 health insurance provider change pending termination-cost estimate
Summary
Council authorized switching employee health insurance from Benecon to Municipal Benefit Services for 2025 only if run-out termination costs do not exceed $42,000; estimated annual savings reported at $13,730. Two councilors are recorded as having abstained during the vote in the minutes.
Borough Manager Cindy Wells and Councilor Brian Osborn reported they met with Municipal Benefit Services to explore switching the borough's employee health insurance from Benecon to MBS. Wells said new rate information would be available Oct. 15, 2024, and that an estimate of run-out termination costs would be provided; the council set a $42,000 threshold for proceeding.
The minutes record an estimated annual savings of $13,730 if the borough switches plans. The motion to change providers for 2025 if termination costs would not exceed $42,000 was moved by Councilor Osborn and seconded by Councilor Steadman; the minutes state that Councilor Riley Cross and Councilor James Kerns abstained from voting and that the motion carried. The minutes do not list final procurement steps, vendor rates, or the run-out cost calculation; staff will return with the Oct. 15 rate information.
