March 16, 2009                                                                    

Weitzman declares Nassau’s schools are seeing budget relief due to State health insurance savings engineered by County

Many Nassau County school districts are noticing 2009 budget savings on their health insurance costs due to County Executive Tom Suozzi and Comptroller Weitzman’s successful drive last year to have the State Health Insurance Program (NYSHIP) premium lowered for all municipalities and school districts that participate in the program. In November 2008 it was announced that NYSHIP would be raising its 2009 rates by just 1.2%, rather than the projected 7.9% a move that translates into savings of approximately $156 million for State tax payers and $116 million for schools and local governments, mostly in Nassau.

Weitzman said County officials were still speaking with State officials seeking to recoup a portion of the excess premiums charged in prior years – an amount equal to $540 million state-wide and $21 million for Nassau County, that could made as a one month premium holiday for all NYSHIP participants.

“This shows what can be accomplished when all levels of government work together for the betterment of taxpayers,” said Comptroller Weitzman. “This cost-saving move could not have come at a better time for Nassau’s financially struggling County and school districts.”

Last year County Executive Tom Suozzi and Comptroller Weitzman together presented an analysis showing that participants in the State’s health insurance program (NYSHIP) had been charged inflated premiums since 2002 and they urged that 2009 rates be kept flat and that excess collections be returned. The State agreed to make some changes and raised premium rates for 2009 by only 1.2%. This news has translated in huge savings for Nassau County—approximately $11 million—and also for school districts throughout the County. The Long Beach School District has seen its health insurance costs go down as a result of the changes.

“The difference in rate change is huge and makes a real difference for my schools,” said Superintendent Dr. Robert Greenberg.

In October 2008, Weitzman, Suozzi, local school superintendents and local elected officials stood together at a joint press conference to ask that 2009 health insurance premiums be lowered and that the excess charges be refunded. Working with State officials and supported by Town Supervisors and County Executives in Nassau, Suffolk, Westchester and Rockland, local village officials, and school districts around the state, NYSHIP and New York State Department of the Budget officials acted to reduce the excessive rates.

Comptroller Weitzman said today that he is repeating his call for an independent review of NYSHIP to provide clear accounting for premiums, reserves and earnings on funds held by the program and to review their operations. County officials are also asking that NYSHIP operate with more transparency, allowing state and participating agencies to access data and that the program work with the County to contain costs and develop new projects targeted at improving employee health.

The analysis of NYSHIP's excess charges was based on a report by the County’s healthcare consultants, George Kalkines and Jeffrey Thrope of Manatt, Phelps & Phillips, LLP, and Charles Pendola of Hidden Assets, LLC.

NYSHIP was established under the New York State Civil Service law as the mechanism through which the State provides health benefits to its employees and retires. Many local government entities, including counties, cities, towns, public authorities, school districts and others provide health benefits to their employees and retirees through NYSHIP as “participating agencies.”