Health insurance costs strain municipal budgets

When Supervisor-elect Jennifer Pecora asked Sugarloaf Twp. to provide health insurance for herself and her family, her request sparked comments.

Andy Sanko, speaking from the audience at a supervisors’ meeting on Nov. 18, said when factoring in estimated annual price increases the request could cost the township $377,000 during the six years of Pecora’s term.

Joseph DiSabella Sr. said neither he nor the two other supervisors were on the township’s health insurance plan. They postponed a vote on Pecora’s request for the benefit that state law says supervisors are eligible for until a meeting scheduled on Tuesday at 6:30 p.m.

Supervisors in Sugarloaf Twp. earn a base salary of $1,875 a year, whereas health insurance for one family costs the township $42,037 annually.

Like families and employers, even municipalities strain to pay higher health care premiums as 2026 approaches, and health insurance costs have factored in tax increases for some governments.

Looking at 312 insurance providers who participate in the marketplace created by the Affordable Care Act, a study by Kaiser Family Foundation found the median price increase for premiums next year will be 16%, the largest increase in eight years.

A dispute about whether to renew enhanced tax credits to help people buy insurance on the marketplace shut down the federal government for 43 days this year. On Thursday, the Senate declined to continue the subsidies, and unless there’s another vote with a different outcome before the new year, costs for enrollees now receiving those subsidies will rise in 2026 by an average of 114%, Kaiser estimates.

In Greater Hazleton, municipalities preparing their budgets for next year are noting increases in premiums, and supervisors in Butler and Hazle township are among the elected officials who obtain insurance through municipal policies.

City of Hazleton City Administrator Daniel Lynch goes over the 2025 proposed city budget during council meeting on Tuesday Nov 12, 2024.(John Haeger / Staff Photographer)

Hazleton faces a healthcare insurance increase of 16.2% for its 104 workers. City Administrator Daniel Lynch said by email that total insurance costs will rise to $3.44 million from $3.05 million. While costs can vary, individual plans cost about $19,000, and family plans can exceed $56,000, he said.

A budget introduced in November raises property taxes by 25.3%, a figure that council could change as early as the next city council meeting on Tuesday at 6 p.m. But Lynch said the increase for health insurance equates to 18% of the additional revenue expected from the tax increase.

Health insurance costs went up 20% in Butler Twp., where the supervisors met Thursday while trying to reduce a $720,000 deficit in a budget with $4.7 million of expenses.

The budget workshop will continue on Monday at 10 a.m. in the township building and is open to the public and the supervisors plan to approval a final budget on Dec. 29 at 10 a.m.

A draft of the budget on the township’s website shows the costs for medical, dental and vision insurance for workers in police and highway departments will increase $81,909 next year.

West Hazleton Manager James Schweitzer said rising costs for insurance and salaries primarily contributed to the 15.6% increase in property taxes that borough council approved Tuesday.

Collectively, health insurance costs for workers in police, fire, streets and administrative departments rose $26,118 in West. Hazleton.

UnitedHealthcare discontinued a plan that Conyngham used so the borough adopted a new plan in which rates rise by age, but borough council avoided raising taxes when adopting a $940,000 budget, borough Manager Lynn Falatko said.

McAdoo Borough dealt with premium increases of 23%. For individual policies, monthly prices jumped to $1,248 from $959.

Freeland’s cost for insuring police only rose to $32,000 from $30,878, according to the budget that had a deficit of 9.3% when introduced.

Kline Twp., where the tax rate stayed the same in the 2026 budget, only has two employees who both are insured through spouses rather than the township.

Employee benefits and insurance in Black Creek Twp. went up $10,012 to $77,207 next year in a $903,478 budget.

Jennifer Pecora, candidate for Sugarloaf Twp. supervisor, Nov. 4, 2025. (Submitted Photo)

Pecora, who seeks insurance from Sugarloaf Twp. when her term as supervisor beings next year, said she only asked for a benefit that state law allows and that many supervisors receive in townships across Pennsylvania.

“Practices vary by township, depending on local policy, budget structure and contracts,” Pecora said in a text message.

She pointed out that the figure cited during the public meeting about the cost for her insurance over six years is speculative.

“Some of the claims made publicly have been influenced by personal motives and opinions about me as an individual rather than by factual information,” Pecora said.

Pecora said other supervisors have received health insurance in Sugarloaf Twp. before, as did supervisors in Butler Twp. when Pecora worked there as manager,

Currently two of three supervisors in Butler Twp. receive insurance through the municipality. The cost for their plans is estimated to rise to $103,000 next year from $85,160 in this year’s budget.

In Hazleton and West Hazleton, council members don’t currently receive health insurance through the municipalities.

In Hazle Twp. on Monday, Supervisors James Montone and Robert Fiume OK’d a family health insurance plan valued at $43,200 for their colleague Anthony Griguoli. A policy approved at the meeting says supervisors working as part-time roadmasters qualify for health insurance from the township or stipends of up to $1,000 a month toward health insurance they obtain from outside the township.

Montone, a supervisor for a dozen years, said he hadn’t accepted perks like health insurance before this coming year, and Fiume said supervisors in other townships have received health insurance for years.

© 2025 the Standard-Speaker (Hazleton, Pa.). Visit standardspeaker.com. Distributed by Tribune Content Agency, LLC.