Newsday (Melville, New York), January 3, 2007, Wednesday

Copyright 2007 Newsday
Newsday (Melville, New York)

Distributed by McClatchy-Tribune Business News

January 3, 2007 Wednesday

SECTION: STATE AND REGIONAL NEWS

HEADLINE: Brookhaven benefits fight reflects U.S. trend

BYLINE: Erik German, Newsday, Melville, N.Y.

BODY:
Jan. 3--A recent flap over supplemental health insurance for Brookhaven Town's 1,000 union workers has turned out to be more than just a political showdown at the final town board meeting of 2006.
The drama that night -- in which Supervisor Brian Foley, looking to cut rising health insurance costs, faced hundreds of union workers fearful of losing coverage -- is playing out in municipalities nationwide, experts said.
"There's a revolution going on in municipalities principally because the taxpayers don't want to see taxes go up," said Michael Markowich of Cornell University's School of Industrial Labor Relations. "They're having a hard time accepting why the benefit packages of municipal employees should be untouched when the taxpayers' own benefits are being cut in the private sector."
In Brookhaven, the fight at the Dec. 19 meeting centered on the supplemental vision and dental plans and other benefits town employees call "Package 7." According to an earlier agreement with the union, the board had less than two weeks to decide whether to extend the package until 2009 or eliminate it.
Foley asked for more time. In six months, Foley staffers said, they could carve out $500,000 in savings while still keeping all benefits intact.
Union leadership was unconvinced. "If you believe that, then I'm the pope," Civil Service Employees Association president William Walsh said later.
Attendees said more than 200 union members flooded the meeting to express opposition to the deal. Democratic Councilwoman Carol Bissonette joined the town board's three Republicans in opposing Foley's proposal, voting instead to extend Package 7 until 2009.
The package includes one pair of eyeglasses per year and $200 payouts upon childbirth.
In addition, Brookhaven employees also enjoy comprehensive health coverage through New York State. The insurance requires no pay-in by employees. According to Brookhaven chief of staff Lori Baldassare, "It's the top plan offered by the state."
The price of Brookhaven's health coverage jumped from $10 million to $23 million in the past four years, said Deputy Supervisor Jack Schnirman, a rate he described as "just not sustainable."
Faced with similar expenses, towns such as Riverhead, Babylon, Huntington and Smithtown already are asking employees to pay anywhere from $66 to $110 monthly for vision and dental coverage, according to Brookhaven officials.
Nationwide, costs are even higher. In Ohio, a state report found that 77 percent of public employers ask workers to contribute to their health coverage at an average monthly cost of $132.
Comprehensive free health coverage is "becoming a dinosaur," Markowich said. "Employers can't afford it."
Favored plan
Supplemental health benefits, known as "Package 7," available to Brookhaven Town employees through the Employee Benefit Fund of the Civil Service Employees Association include:
One eye exam and one pair of contact lenses or eyeglasses a year.
A $200 payment after the birth of a child, with multiple payments for multiple births.
Up to $3,210 a year for dental work.
A one-time payout of up to $2,622 for adult orthodontic work.
Up to $450 once every three years toward the cost of a hearing aid.

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