Recorder News Staff
FONDA -- The Montgomery County Board of Supervisors Finance Committee on Tuesday voted unanimously to move resolutions to the full board to dissolve the county health insurance trust and declare its contracts null and void.
That was after a majority of the committee shot down a resolution sponsored by trust President and Amsterdam town Supervisor Thomas DiMezza that would also serve to dissolve the trust, but honor its recently-extended contracts.
The resolutions that will move forward to the full board's consideration at its meeting Feb. 28 were sponsored by Amsterdam 2nd Ward Supervisor Jeff Stark, who said he doesn't believe the trust is at the root of the issue.
"It's not the trust, it's the contracts," he said, noting the administration costs are "too high."
Along with service agreements with Empire Blue Cross, Delta Dental, Davis Vision, and CanaRx for prescription drugs, the trust has executed contracts for third-party administrators Benetech Inc., and another with Benetech, Inc. and Benefits Marketing, LLC.
It's Stark's belief several administrative contract provisions aren't beneficial to the county's budget, like the fact eligible retirees who were once enrolled in the Medicare Advantage Plan were returned to the county's health insurance pool, which he said costs the county an additional $200 per person per month.
He said 83 county employees are Herkimer County residents and utilize healthcare services there, which is considered "out-of-the-area" for coverage, and costing an additional $174,000 in the past six months for the county.
And in some instances, Stark noted cases where administrative fees far exceeded claims, listing $5,000 for dental insurance administration for $1,700 in claims, including a similar situation for eyecare.
"I don't know why any sensible person would think that's saving us money," Stark said.
All the health insurance trust contracts were signed by DiMezza and were neither reviewed by county Attorney Douglas Landon -- the trust's appointed legal representation -- nor Amsterdam Corporation Counsel Gerard DeCusatis.
The trust has been operating since 2007 as a "buying consortium" with the city of Amsterdam. It was created under the county's intention to eventually form a trust under the provisions of Article 47 of state insurance law. The county switched gears to craft it under Article 44 when it realized the criteria of the former could not be met.
An Article 44 still hasn't been formed, and supervisors have since questioned the trust's operation.
DiMezza said he was trying to get the resolution to the full board for its consideration.
"If this gets stalled in committee, I'm afraid the other resolutions [sponsored by Stark] may fail, and then we'll be back to square one."
He then read a statement that warned about "possible litigation" if the contracts aren't honored, and said the trust's work "saved $1.1 million if anyone wants to admit it or not."
One of the resolutions sponsored by Stark serve to appoint himself, St. Johnsville Supervisor Dominick Stagliano and Amsterdam 5th Ward Supervisor Michael Chiara to the trust board "to take the necessary steps to wind up the consortium's business and to dissolve it."
It includes a provision to call upon the firm of Toski, Schaefer & Co., PC, to provide a full and complete audit of the trusts finances so the assets can be divided between the county and city.
The other resolution, which nullifies the contracts, orders renewal quotes from the broker of record, and orders the advertisement for quotes from interested carriers.
The full board will meet next Tuesday at 7 p.m. in the supervisors chambers at the county office building on Broadway in Fonda.