CRANBERRY TWP — The township supervisors Thursday night voted to participate in a self-funded health care plan next year to stave off a 10 percent rate increase for its 127 employees.

Manager Jerry Andree said the township annually pays more than $2 million for health insurance for its employees, a number that’s continuing to climb.

Cranberry’s current health care provider is Aetna.

Instead, Andree said the township is switching to the Delaware Valley Health Insurance Trust, a self-funded program that’s used by more than 13,000 people in southeastern Pennsylvania.

Andree said the trust already has 83 public entities enrolled, such as municipalities, school districts and counties.

He said each member of the trust pays a predetermined amount established by actuaries to cover anticipated health insurance costs for a given year.

At the end of the year, every member of the trust shares the losses or gains from all the rest of the members.

“The board has directed that we identify the most effective manner in which to manage our health care costs over the long term,” Andree said.

“Moving from the commercial fully-insured market to a municipal self-insured program best positions us to meet that directive, especially under the evolving requirements under the Federal Affordable Care Act.”

Andree added that Delaware Valley Health has one of the lowest overall administrative costs that were evaluated.

The new provider network and benefits “mirror what we currently provided and include a comprehensive, integrated employee-wellness program.”