Credit: Jeff Bohen/LevittownNow
At Thursday night’s Bristol Township Council meeting, council approved a new health care provider for township employees, saving the municipality more than $86,000.
The unanimous vote by council moves the township’s 76 police officers and four retired officers to the Delaware Valley Health Insurance Trust.
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“This would give our police officers competitive coverage while saving $86,000 in total dollars,” Township Manager Bill McCauley, who will be the trustee of the plan, said. Adding, the trust will save the township 8 to 15 percent more than the previous year.
According to McCauley, the municipality spent more than $1 million dollars in 2013 with current health care provider Blue Cross/Blue Shield.
The town government is working to save money as it has over $90 million in unfunded liabilities, which includes $81 million in insurance costs for retirees.
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“This is no doubt better than what the ‘Blues’ are offering,” McCauley said, pointing to reduced premiums of 6 percent for those in the plan.
McCauley said other communities in Bucks County, including Bensalem, Newtown Township and Northampton Township, have switched to the trust in an effort to save money. He said Bensalem, where he was formerly the manager, has saved millions in insurance costs since joining a trust in 1999. More than 97 Pennsylvania public entities are part of the group.
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According to their website, here’s what the Delaware Valley Health Insurance Trust is:
The Delaware Valley Health Insurance Trust is a regional risk sharing pool providing health & dental insurance benefits to nearly 10,000 employees and dependants of participating members. The Trust was formed under the authority granted by the Pennsylvania Intergovernmental Cooperation Law.
Participants have the choice of using credits allocated, reducing annual premium contributions due, or to roll the balance forward into future years. If the fund credit balance is rolled over to future years, the trust will add interest. If the move is approved by the trustees, an additional year’s allocation to the balance, the website says.
“Obviously with our financial situation, we were looking to save wherever we could,” McCauley said.
