HOBART | City employees will start 2008 with a new medical insurance provider, Mayor Linda Buzinec announced Wednesday.

The Board of Works gave the go-ahead to switch the city's insurance.

The $2 million a year cost for switching to Humana will save the city $200,000 and will offer city employees a better insurance package, including dental and extended care, she said. Buzinec said the city has for the past 15 years had its insurance coverage through Gary Fisher Services, but the head of the company is selling it.

The city now pays for $20,000 in life insurance for each employee, she said.

In addition, employees also can take out additional life insurance under options offered by the new company.

There are about 250 city employees.

The city's present health insurance expires Dec. 31, she said.

City employees, who were hired prior to January 2006, pay $2 a month for their basic medical insurance coverage.

Those hired after that date pay $100, she said.

Under the new health insurance plan, city employees will have the option to pay more for their present packages to include the new options.

Buzinec said city officials compared benefits and costs of six different medical insurance providers before selecting Humana.