Pin It
ImageReducing retiree health benefit costs were on the docket at Wednesday's Town Board meeting.  But while Town Board members agreed on what to do, they split along party lines on how to do it.  Republicans wanted to consider all the changes as a comprehensive package so they can tell retirees all the changes at once and how they will affect their coverage and costs.  Democrats chose to consider individual elements over the course of three or four months, passing each piece separately.

"I'm not prepared to move this at all," said Councilman Bud Shattuck.  "We're talking about comprehensive changes to their health care.  I want to get that comprehensive piece together, make those decisions on what we're going to do, and make that decision all at once.  When you look at four or five different things that affect four or five levels of both our current employees and our future employees and retirees it's easier to lay out what the costs will be to our municipality and the individuals."

But Supervisor Scott Pinney said that after about two years nothing has been done to deal with skyrocketing costs to the town.  "We currently pay a premium for retirees who receive Medicare.  The total policy is $1557.92 per month," he said.  "I don't know any retired person who would pay that kind of money when there is a supplemental Medicare Advantage plans for $175.92 per month, or an Excellus supplemental plan for $306 per month.  It's the Town policy that they pay $242 a month.  Something like that would be an advantage to the Town and the retirees, too."

Image
Lansing Town Board (left to right) Scott Pinney, Connie Wilcox, Marty Christopher, Matt Besemer, Bud Shattuck

The issue this month was to reduce the $127,000 the Town annually spends on retiree health benefits by eliminating Medicare reimbursement and replacing it with supplemental policies that provide a similar level of service at a significantly lower cost.  The board provided a chart comparing current costs to the cost of two alternative supplemental plans.

"We're not actually providing a reimbursement check to our 65 year and older retirees," explained Town Bookkeeper/Personnel Officer Sharon bowman.  "When we run the calculation each year from the insurance companies we apply the Medicare premium that is currently $96.40 to their health insurance share that they contribute.  So we're not cutting checks to them.  It is simply reducing their out of pocket share for their health insurance."

The board was unanimous on what to do, but first Shattuck, then Marty Christopher, and then Matt Besemer said that they want to consider the issue as a whole and vote one time on the entire package.  The issue was forced when Pinney moved to vote on this month's piece and Deputy Supervisor Connie Wilcox seconded the motion.  It passed four to one with Shattuck voting no.

"Things need to be changed," Pinney said.  "We're spending $127,000 per year on retirees insurance currently.  And that number is going to go up as more people retire.  So I think we need to start moving forward on this."

----
v5i12
Pin It