County Plans To Save Millions In 2007

Ulster County Legislature Chairman David B. Donaldson announced recently that the County will save a total of $2.5 million in 2007 by increasing medical and prescription drug co-payments for all active employees. The County’s 358 Medicare-eligible retirees will be required to use Medicare as the primary insurance and the County’s insurance as a supplement. Chairman Donaldson said, “This change structures the process the way it was designed to run and saves $800,000 without reducing the quality of the retirees’ health care. This marks the first time the County has reduced overall health costs.”

He said a hardship fund will be established for union members who cannot afford the added expense. “Employees who contribute 15 percent toward their health insurance will see a savings in their contribution because the increases will lower the overall cost of the plans,” said the Chairman.
Health insurance cost the County $18.5 million this year and was estimated to rise to more than $20 million in 2007. With the changes the County is looking at an overall cost of $17 million next year.
Continuing the effort of efficiency and reform, Chairman Donaldson formed a new Task Force on Employee Health Care Insurance to assure further cost saving measures. “We took a giant first step in saving $2.5 million, but we must continue to look for ways to contain employee healthcare cost,” Donaldson said recently announcing the formation of the Task Force.

The Chairman of the new Task Force, Majority Leader Jeanette Provenzano said she was hopeful that the Task Force would be successful in finding other ways to save money without affecting the quality of health-care coverage for County employees. “I think we’ve discovered with a little creative thinking that we can come up with innovative solutions which will benefit everyone, taxpayers and employees alike,” Provenzano said. Provenzano stressed that the County does not plan to take health-care benefits away from its employees.

Both Democratic and Republican Legislators along with County Union Officials have been appointed to the Task Force. Besides Majority Leader Jeanette Provenzano, D-Kingston, as Chairman, others appointed to the Task Force are Legislators Peter Loughran, D-Kingston, Chairman of the Personnel Committee; Peter Kraft, D-Glenford, Chairman of the Human Development Committee and a member of the Personnel Committee; Dean Fabiano, R-Saugerties and Robert Aiello, R-Saugerties. County Union Presidents or designees have volunteered to serve on the Task Force which will work directly with County Administrator Michael P. Hein.