Health Insurance Switch Could Net $500K Savings for Canonsburg

Canonsburg officials are mulling a possible health insurance switch for employees—one borough manager Terry Hazlett told council members could save the municipality more than $500,000.

"Every couple years we see what is out there," he said Thursday, adding that UPMC offered the borough similar coverage to Highmark's at a savings of $233,000 for each of the first two years.

The offer also stipulates that the borough would have no more than a 15-percent increase in premiums in the third year.

Hazlett thanked the ongoing fued between the two companies as one of the reasons for the offer, and said that other municipalities have been offered similar deals.

"The municipalities are the benficiaries of this," Hazlett said.

He added that officials have already held a meeting with the borough's 42 employees and that while "nobody is thrilled with it" because of the paperwork associated with a switch, that the savings couldn't be ignored.

One of the differences between the current and proposed plans is that Canonsburg General Hospital would no longer be a covered provider except in emergencies. However, both Washington and St. Clair hospitals are included in the UMPC system.

"Obviously we are going to look into it," Hazlett said. "In my estimation it will save us half a million bucks over three years, and that's being conservative."

But he added that the union representing the public works, sewage and clerical workers has said it might file a grievance the change if it is implemented.