Supervisor says Medicare plan for retirees would save $700,000
by JESSICA L. FINCH Associate Editor

Supervisor Satish Mohan and the Amherst Town Board were accused of being "cowards" during Monday's meeting after voting to table a resolution that would have placed 172 town retirees on a Medicare plan.

George John, a former fire dispatcher, was heated about Mohan's approach to changing the contract for a group of retirees.

"The contract is a legal document and can't be changed on a whim," he said during the suspension of rules. "It is illegal to change this document."

He asked that the board either vote the resolution up or down because many of those affected are in their 80s and nervous about their insurance coverage.

A few hours later when the board reached the committee report section of the meeting, the majority voted to table the resolution. That is when John became upset and yelled at the board as he walked out.

Mohan said the current plan costs the taxpayers millions, and by changing the 172 eligible retirees to the Medicare plan the town would save $700,000 annually.

"I promise the plan will match what they are getting today," he said. "The retirement costs have been a blunder to the town. I guarantee the same coverage."

Personnel Director Robert McCarthy was not in attendance at the meeting but commented on Tuesday.

"We can change the plan as long as we can offer (retirees) a plan that is at least equal to the coverage they had that they were entitled to when they retired," McCarthy said.

He said in his opinion the Medicare plan would be better for the vast majority of the retirees. McCarthy added that whether the plans are equal is largely subjective.

A meeting between Independent Health, the town's insurance provider, and McCarthy and Mohan was scheduled for this week.

Mohan said he plans to prepare a comparative sheet to show the retirees how the Medicare plan is the same as the current plan.

He also plans to write to the attorney general for his opinion on the legality of the issue.

During Monday's meeting, Town Attorney Tom Jones was asked for his opinion. He said the town is not locked into one program but the benefit coverage is a contractual obligation that requires retirees to be entitled to the same benefits.

Mohan's resolution said the Medicare program was for retirees 65 years of age and older. Currently there are 75 town retirees in the Medicare Encompass plan.

The resolution called for an additional 172 retirees to be moved to the program.

Council Member William A. O'Loughlin Jr. attempted to explain the program, of which he is a member.

"It's a terrific plan, equal to or better than (retirees) get now," he said. "This is more cost-efficient."

McCarthy reported that in 2006 the town paid $3.7 million in retirement insurance costs.

In another contractual issue, a resolution sponsored by Mohan upset Highway Department workers.

Chris O'Neil, president of the Amherst Highway Employees Association, spoke during Monday's meeting, saying the town was trying to force the association into a single medical carrier without negotiating it.

"We need to return to the bargaining table, and continue negotiations and actually negotiate," he said, adding that there has been very little bargaining from the town.

The unsettled contract has been costing the town more than $500,000 a year.

It is estimated that the town pays $42,000 a month for health insurance for highway workers.

Mohan was requesting that the highway association, which has 140 members, consider moving to Independent Health's Passport Plan.

The board voted 5-2 against the resolution, with Mohan and O'Loughlin voting in favor of it.

McCarthy said contract negotiations will continue. The contract has been unsettled since the end of 2005.