Binghamton City Council approved a new healthcare option for city employees in an effort to save taxpayers money.

Proposed by Mayor Matt Ryan, it's called the Preferred Provider Organization, or PPO.

The plan offers lower premiums with higher deductibles.

It's designed to attract those with fewer medical needs.

The city will continue to offer its traditional plan, which has higher premiums but lower deductibles.

But the new plan will be the default health care option.

Management staff's insurance contributions will also increase from 10% to 15% starting January 1.

Those hired before 2003 will see contributions increase in phases, from 7.5% to 12.5% in 2009, then to 15% in 2010.