SEVEN FIELDS — Borough council Monday night approved a 47 percent increase in health insurance costs for employees that will take effect in the new fiscal year on July 1.

Manager Tom Smith said council expected an increase in health insurance costs for its five employees and even budgeted for a 15 percent hike.

“We never would have expected it’d go up 47 percent,” Smith said.

The large increase from UPMC is the best deal the borough could get, according to Smith. The manager said he shopped around and found an increase of 114 percent from Highmark and a 260 percent increase from Health America.

Employees now will pay about $60 a month for the insurance, a figure Smith said “isn’t unreasonable by today’s standards.”

The borough’s cost for health insurance will increase from about $26,000 to more than $38,500.

Smith also said council will budget for at least a 20 percent increase in insurance next year.