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Wednesday night the Lansing Town Board voted to change health insurance benefits for retirees 65 years old and older.  The vote was the culmination of months of deliberation in an attempt to save the Town money on health care payments that were fast becoming a bottomless pit. 

"We've considered it a lot," said Lansing Supervisor Scott Pinney.  "We've talked to a lot of people.  The board has discussed it for many months now.  The current plan cost is so high that even the percentage the retirees pay is fairly high.  I believe this move saves the majority of the retirees money as well as the town money.  I think it will benefit everybody in the future as well."

The basic idea of the change is that Medicare already covers much of what the Town's current plan covers, so a lot of that plan isn't being used by retirees 65 and older.  The cost to the Town of the current plan is $636.00 for a single plan and $1558.00 for a family.  By replacing that premium plan with a supplementary plan -- one that supplements Medicare benefits rather than duplicating them -- the cost would be $160.66 for a single plan and $321.32 for a husband and wife.

Town officials say that the new plan also reduces the amount retirees pay, and that most of the 11 retirees who are currently 65 or older will save money on premiums.

"The supplemental policy that we're currently looking at the retirees share for a single policy will turn out to be $40.17 and a two person or family plan would $128.53," Pinney said.  "Currently the single policy is $95.34  Two person or family is $342.74."

Until July 1st the Town was also reimbursing retirees for the Medicare premium taken from their Social Security checks by applying the amount to the portion of the insurance retirees pay.  That reduced their monthly payments.  Another benefit that was stopped in Wednesday's vote was an sick leave benefit in which the dollar value of sick leave accrued while the retiree was working was applied to a formula that reduced their monthly payments as well.

Even with those benefits gone, Town officials say that most retirees will pay less, and the Town expects to save about $80,000 per year because of the changes.  Lansing currently has 10 retirement health policies that affect 14 people (including spouses).  The changes the board enacted Wednesday only apply to the 11 of those who are 65 and older.  For now benefits to the 55 - 64 group remain the same.

"It's been a tough go," said Deputy Supervisor Connie Wilcox.  "There have been a lot of battles between the board members who have been working on it for at least five months.  Everybody has to realize that health care costs are out the window.  I think this is a good compromise."

Councilman Marty Christopher read a statement to the board last month clarifying his position that while he was in favor of eliminating the Medicare reimbursement, but would vote against anything else that would change what current retirees currently receive. 

"Unlike corporations and large municipalities who may not deem their employees as their most important commodity, I still do, and will , for the remainder of my time on the Lansing Town Board," Christopher said.  "I do not want to be remembered as part of a board that was so concerned with saving taxpayers money that I forgot those on the team that have worked for us, nor those that continue to be on our payroll."

The board voted 4-1 to make the changes with Christopher voting no.

"We spent a lot of time working on this," said councilman Bud Shattuck. " While none of us are in complete agreement with where we finished, I think we are finally at a consensus to where we can move forward."

Meanwhile the board voted 3-2 to join the County-wide health insurance consortium that was initiated by the Tompkins County Council of Governments (TCCOG).  While officials have said in the past that the program won't save significant amounts of money, there would be some savings.  Concerns about committing to the program before Teamster negotiations take place were assuaged by an October 3 deadline for dropping out.  That leaves plenty of time for the Town to complete negotiations and determine whether it is possible or beneficial to be part of the consortium.

Pinney said he was in favor of joining, though he said the Town needs more information.  He said the October deadline gives the Town plenty of time to get the information.

Wilcox and councilman Matt Besemer voted no.
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