County Calls for Audit of Health Care Plan

State Audit of County Health Plan Requested

January 27, 2003 - press release

Suffolk County Executive Robert Gaffney has called on the State Comptroller to undertake a comprehensive audit of the Suffolk Employees Medical Health Plan. The move is the latest in a series of steps taken by the County Executive to get to the bottom of problems stemming from the work of a consulting firm which had supplied cost figures showing the County's self-insurance plan saved money compared to the State's Empire Plan.

In October of last year, Gaffney announced that his staff had discovered that the cost comparison figures were inaccurate and referred the matter to the District Attorney's Office for investigation.

"It's time to bring in a truly independent and qualified outside agency to help answer the serious questions my staff has uncovered regarding the way the County was misled about cost savings under the self-insurance plan," said Gaffney. "As I've been saying since my office referred the matter to the District Attorney for investigation in October, those responsible for providing bad information must be held accountable."

At a press conference in Hauppauge, Gaffney also sought to dispel confusion regarding the status of the Health Plan and the nature of the problem.

"While the decision to move to a self-insurance program was made by a prior County Executive and approved by the County Legislature before I took office, the situation in Suffolk is nothing like what is going on in Nassau County, where there are serious issues related to that decision," said Gaffney. "It is also important
for people to realize that the Suffolk County plan does not have a huge deficit, as has been indicated in some media accounts, and is not hemorrhaging money."

The problem dates back to 1997 and was uncovered by new professional staff hired by the Gaffney Administration after control of the health plan was transferred to the County's Department of Civil Service in 2001. From 1991 to 2001, the Division of Employee Benefits was part of the Department of Audit and Control, and operated under the jurisdiction of the County Comptroller, a separate elected official. Gaffney had long argued that employee benefits should not be overseen by the same County agency responsible for being a watchdog over County finances, due to the potential for a conflict of interest.

While County officials had been led to believe that the Plan saved a total of $50 million since its inception, professional staff appointed by the Department of Civil Service uncovered the accounting errors, which masked the fact that the plan was actually $34 million more expensive than the one it replaced.

"I'm pleased that the Legislature's decision to move this function to the Department of Civil Service, and our appointment of a well-qualified employee with a background as an investigative auditor allowed us to uncover this problem," said Gaffney. "Had either of those decisions not been made, it is very likely that we would still be operating under the false assumption that the county had saved money under the self-insurance plan since 1997."

After Gaffney referred the matter to the District Attorney for investigation in October, the County filed suit against Segal and Company, the firm responsible for supplying the inaccurate cost comparison information. In November of 2002, the County Executive signed legislation requiring a complete audit of the Health Plan. While a draft audit was recently completed at the behest of a Committee made up of County officials, Gaffney noted, it is limited in scope and does not comply with the law passed by the County Legislature and signed by the County Executive.

"The Legislature and I agree that in order to get to the bottom of this matter, a complete, thorough and comprehensive audit of the Employees Medical Health Plan should be completed," he said. It is important that the agency performing this audit be independent of County government and free from any potential conflict. That's why I've asked the State Comptroller to get involved in an expedited review of the matter."

In a letter sent to State Comptroller Alan Hevesi, Gaffney requested that Hevesi assign a staff to address the issue on a priority basis. "While I recognize that the responsibilities of your new office are daunting, the people of Suffolk County deserve a full accounting in this matter," Gaffney wrote. "I am hopeful, therefore, that you will agree to make an audit of the Suffolk Employees Medical Health Plan a top priority. I stand ready to facilitate such an audit, and will anxiously await your reply."

Ward Tech Auto Tech Students Win at Regional Contest

At Suffolk Community College in Selden, the Greater New York Auto Dealers Association hosted its annual Troubleshooting Competition. At this competition, Auto Repair Technology students from all over Long Island must take a seventy-five-question exam and fix a “no-run” car. The students, working in teams of two, must determine the problem with the car and get it running. To complicate the process, there are twelve other problems, such as non-working windshield wipers, etc., with the car. Everything must be fixed within an hour and a half. Four students from the Auto Tech class at H.B. Ward Center in Riverhead came home winners: (Photo from left to right) Frank Dumicich (Westhampton Beach) and Justin Aiello (Westhampton Beach) who both placed fourth; Mr. O’Hara, the instructor; Danny Walsh (Westhampton Beach) and Corey Belcher (Riverhead) who both won third place. Because these four students placed in the top four, they will be competing at the state finals on February 11 in Whitestone, New York. (click on photo for larger view)