Nesquehoning officials hope to save money on employee health insurance, but further discussion is needed after council acted on the matter without telling the borough water authority of the change.

Last week, borough council approved a motion to pass the PMHIC Consortium agreement.

Councilwoman Mary Fox said before the vote that the borough would have the same health care insurance as last year, which is Highmark, but that the consortium with the water authority would provide the borough with nearly $55,000 a year in savings.

She pointed out that the borough did this a few years ago.

According to the borough, council chose to add the water authority into the consortium because without it, there were not enough employees to meet the criteria. To enter into a consortium, municipalities need to have 15 employees under the health care coverage. Without the authority, the borough only had 11.

However, on Thursday, Shawn Quigley, chairman of the Nesquehoning Water Authority, said that the borough took action on this matter without telling the authority it was doing so.

“If you go back and look at any of our minutes, there is nothing in any of our minutes that it was even discussed at a meeting of the water authority,” he said. “I’m concerned as the board president on the water authority.”

Quigley said he planned to send a letter to the council members objecting this decision, saying that he felt it was “an illegal ordinance that was passed.”

The borough water authority does not have the same insurance coverage as borough employees, which means those employees would have to change insurance policies.

Quigley also said that the savings the borough cited does not reflect what costs the water authority would incur as a result of the move.

After the meeting, council President David Hawk, who also sits on the water authority board, said in an email that “it was a lack of communication between both the borough and authority, and between the authority board members. Efforts are being made to get a meeting set up to see if everyone can reach an agreement to continue with joining the consortium.”

In a related matter, council voted to adopt an insurance cooperative ordinance.