- Associated Press - Tuesday, October 13, 2015

PITTSBURGH (AP) - Pittsburgh Mayor Bill Peduto says the city would start paying health care insurance claims for 3,700 employees next year under a self-insurance program intended to cut expenses.

The director of the Office of Management and Budget Sam Ashbaugh says the city will retain its existing insurance providers, Highmark and HealthAmerica, and plans will not be changed. But rather than paying premiums, the city will pay claims directly.

The city’s cost would increase from about $53 million to $57 million in 2016 and employee co-pay would be phased in over three years.

The move is intended to comply with a mandate to have workers pay 20 percent of the total cost of their health care. Ashbaugh says employee unions must sign off on the changes.

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