Lesko Calls to Reverse Recent Health Insurance Decision

Last week, Brookhaven Supervisor Mark Lesko sent a letter to Robert W. Dubois, Director of the Employee Benefits Division of the New York State Health Insurance Program (NYSHIP), concerning his March 7, 2012 memorandum which changes the rules for health insurance buy-out programs.  In his memo, Mr. Dubois directed municipalities to not accept health insurance buy-out requests from individuals who are already covered by NYSHIP.

“This new NYSHIP policy is completely nonsensical - governments will be paying more money for double coverage of municipal employees. I sincerely hope that NYSHIP reverses this policy and does not make a profit on the backs of the taxpayers,” said Lesko.

In the letter, he wrote, "As the Chair of the Suffolk County Supervisors Association, I must let you know that the memorandum issued by you on March 7, 2012 concerning the use of Health Insurance Buyout Options is of great concern to the ten Suffolk County Town Supervisors…Under the terms you have outlined, you will immediately increase the cost of government to all participating municipalities by dramatically limiting the number of employees eligible to participate in a buyout program.”

Brookhaven negotiated a health insurance buy-out as part of the extension of the collective bargaining agreement with the white and blue collar bargaining units last year. Under that program, 106 employees have voluntarily declined coverage, saving the Town $11,252 for every employee that declines a family plan, or a total of $1,124,989 a year.

If this policy change remains in place, Brookhaven will have to pay an added cost of $11,200 for each of the 43 employees who already have NYSHIP coverage – a total of $481,600 in increased costs. In addition, NYSHIP will make a profit by requiring double coverage for the same family members– instead of governments paying NYSHIP $18,750 for two or more people, NYSHIP will receive $37,500.