Mineola, NY - Citing Nassau County's ongoing financial crisis and the need to implement cost-saving measures, Legislator Patrick Williams (D-Uniondale) and the Democratic legislative majority proposed on Wednesday, August 29 that all non-union employees in the County be required to begin contributing to their health insurance coverage starting with fiscal year 2003.

The measure, introduced by Legislator Craig Johnson (D-Port Washington) and members of the Democratic majority, would save an estimated $294,172 in fiscal year 2003, increase to $492,557 in 2004 and reach $732,938 by 2005. There would be an additional 10% annual savings increase each year thereafter. The legislation would affect employees who are active on January 1, 2003, as well as employees who retire after December 31, 2002.

According to Legislator Johnson, the proposal comes at a time when the New York State Department of Civil Service is projecting a 12.3% increase in health insurance costs in 2002 for single coverage and a 12.9% increase for family coverage. Financial experts anticipate a 10% annual increase for both individual and family coverage starting in 2003. Under the current system, all health insurance costs would be borne entirely by the County.

"Health insurance costs, are a major component of the County budget. In 2001, the County expects to spend $67.2 million on health insurance for its employees. The projected annual increase over the next several years would place an extremely heavy burden on the already shaky County finances," said Legislator Johnson on behalf of the Democratic majority. "There is precedent for this proposal in both the private sector and municipal government. It is time for someone to take the first step toward significant savings," he added.

While any changes in health insurance contributions for union employees would be subject to future labor negotiations, the County has the authority to require contributions from its non-union employees of which there are approximately 550.

The plan would be phased in over a three-year period with single employees paying 5% of their health coverage costs in 2003, 7.5% in 2004, and 10% annually thereafter. For example, the anticipated cost per employee for single coverage in 2003 is $4,659. Five percent of that would be $233 annually, deducted before taxes.

The cost for family coverage in 2003 would be $9,699. Employees would pay 5% of the first $4,659, just like individuals with single coverage. However, the contribution for families would increase to 12.5% on the difference between the $9,699 for family coverage and the $4,659 for single coverage, with the total contribution for 2003 being $863 for families. By 2005, the family rate would be 10% of the cost for single coverage plus 25% of the difference between individual and family rates.

Presiding Officer Judy Jacobs (D-Woodbury) said that the Democratic majority feels very strongly that the County could achieve significant savings in the out years of the financial plan through health insurance contributions and that any savings would lessen the need for layoffs or tax increases. "Decisions such as these are never easy. But someone needs to take the first step," said Presiding Officer Jacobs.

Legislator Brian Muellers (D-Glen Cove) concurred. "Given that health costs are projected to rise rapidly over the next several years, the fiscal savings of this initiative are substantial."

While the Nassau Interim Finance Authority {NIFA} has repeatedly called for employee contributions to health insurance coverage to be part of Nassau County's fiscal recovery plan, the Democratic majority believes that such initiatives should begin with non-union employees.

"Governing isn't about exempting yourself from the hard decisions," said Legislator Joseph Scannell (D-Baldwin). "The majority believes that it should lead by example."