STONE HARBOR – A health insurance option offered to borough employees for the first time this year has drawn a mixed response, borough officials say.

The option, which was provided in an effort to keep down the borough’s employee insurance expenses in the face of a minimum 37% cost hike in the State Health Benefits Plan, offers a high-deductible package combined with a borough contribution to employee health savings accounts.

The plan reduces premiums for both the employee and the borough, as well as provides a dollar amount toward higher co-pays and deductibles. However, for employees who go above the contributed funds in their health savings account, the burden of payment switches to them. Employees also have the option of sticking with the current health insurance plan.

In the end, the degree to which the borough can offset some of the budget impact of the state rate hikes will depend on employee choices during open enrollment.

While the Borough Council at its Nov. 3 meeting did not disclose actual numbers on how many employees selected which health plans, statements made at the meeting implied some level of success in getting employees to choose the borough’s preferred solution, the high-deductible plan with a health savings account contribution.

Councilwoman Jennifer Gensemer, chair of the Administration and Finance Committee, called the open enrollment a “moderate success.” Councilman Ken Biddick went further, saying while it was not a home run, it was “a triple.”

In more understated language, Business Administrator Joe Clark said the high-deductible plan received “decent participation.”

All promised the public more definitive statements about the numbers and the budget impact at the Nov. 17 council meeting.

Stone Harbor this year was unable to secure private insurance at a hoped-for lower cost than the state plan because the loss ratio on its employee pool was too high for a private insurer to make a profit. As Biddick said at the Nov. 3 council meeting, “None of those companies wanted to touch us.”

The borough was facing a difficult set of circumstances with respect to employee health insurance. The State Health Benefits Plan for local government employees had announced premium rates for 2026 that are 37% higher at a minimum than those in 2024. Rates have been soaring since 2023, and a number of municipalities in the county and statewide have been leaving the state plan for private insurance.

Stuck with the state program next year and facing a potential $1 million increase in budget impact from the rising premiums, most of which are paid by the borough on behalf of its employees, the borough came up with its optional plan.

Contact the reporter, Vince Conti, at vconti@cmcherald.com.