WB City Council OKs health insurance contract with Highmark [The Times Leader, Wilkes-Barre, Pa.]

Times Leader (Wilkes-Barre, PA)

Oct. 28—WILKES-BARRE — City Council finally voted on a $7.8 million contract with Highmark for health insurance at Thursday's monthly meeting.

Council Chair Beth Gilbert-McBride cast the lone "no" vote in a 4-1 vote awarding the deal to Highmark.

The item had been pulled from consideration at the Oct. 13 meeting to give Council more time to review it. Council raised concerns about hidden brokerage fees, but was since reassured that the city would not be responsible for such costs. Any fees with broker Risk Strategies|Joyce Insurance Group, which negotiated the deal, would be paid by Highmark, Mayor George Brown said.

Three people objected before vote, generally agreeing with frequent council critic Sam Troy, who said there wasn't enough detail for the public, questioning why the city used a broker to negotiate the deal this year when it apparently didn't in the past, and contending the city didn't do enough to reduce the cost of insurance through deductibles, co-pays or other methods.

City Administrator Charlie McCormick said that the broker, Risk Strategies|Joyce Insurance Group, negotiated the fee from an initial 7% to 3.1%. He also said the city is bound to provide the coverage in the deal because of union contracts, which are under negotiation, and that the deal with Highmark is for only 2023 and the city will issue a Request For Proposals in hopes of getting more offers for 2024.

Other action

Council also voted unanimously to award a contract to James T. O'Hara, Inc. to do work on the Laurel Run and Mill Creek channel wall at various locations at a cost of a bit more than $1 million. The channel walls were damaged last year by high water from the remnants of Topical Storm Ida. Several council members voiced appreciation for the move, citing concerns by residents living near the sites to be worked on.

And council gave second and final reading and approval for two ordinances. One amends the "Fire Prevention and Protection" ordinance, replacing the section on consumer fireworks to better comply with a recently enacted state law. The other amends the utilities ordinance, removing a section on "tappage fees" and thus elimination duplicate language contained in the "Build Regulations" ordinance.

Reach Mark Guydish at 570-991-6112 or on Twitter @TLMarkGuydish

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