County abandons plan to cut retirees' Part B reimbursements

CANTON — St. Lawrence County lawmakers Monday unanimously rejected a proposal eliminating reimbursement for retirees' Medicare Part B health coverage.

The idea was included as a cost-saving measure in next year's proposed $222 million budget, and was slated to save $400,000 a year. Officials have said retirees are each reimbursed about $1,200 per year.

"It would create a lot of hardship for many of the people who couldn't come tonight," said Joseph M. Cosentino, Civil Service Employees Association Local 923 president. "A lot of these people worked hard for you over 25 to 30 years. This would be a slap in the face."

Mr. Cosentino and a group of more than 20 retirees attended Monday's Operations Committee meeting.

The Legislature voted to reimburse retirees for supplemental Medicare Part B coverage in 1985, before enrollment was mandatory for people 65 or older. County Administrator Karen M. St. Hilaire said the Legislature at that time reasoned that money would be saved by contractually requiring retirees to use Medicare as primary health coverage and the county's self-insured plan as a supplement. Because Medicare Part B coverage was required under contract, lawmakers had voted to reimburse retirees for it, she said.

"This is the difference between right and wrong," Legislator David W. Forsythe, R-Lisbon, told the crowd. "You earned this. I would be willing to discuss whether we should offer it to retirees in the future, but to take it away from people who are already getting it would be wrong."

"I agree, but I caution that in 2011, the cost will go from $96 to $124 a month," said Legislator Joseph R. Lightfoot, R-Oswegatchie. "It will add another $100,000 to the cost, and we want to be prepared for that. We will have to make some hard decisions to come up with $400,000, but I think we have enough creativity here to be able to do it."

Legislators said they will discuss next month whether to no longer offer reimbursement for new retirees and what the cut-off deadline should be.

"If I were thinking of retiring, I'd do it real quick. It might act as an incentive," said Legislator Peter W. FitzRandolph, D-Canton.

While lawmakers agreed to spend $400,000 on retirees next year, they also took steps to raise more revenue to deal with a looming 2010 budget gap.

Legislators voted unanimously to ask the state Legislature permission to impose a monthly 30-cent surcharge on wireless telecommunications users and to raise the county's 0.75 percent mortgage tax by a half a percentage point to 1.25 percent. Both measures are included in next year's budget proposal and are expected to generate a total of $1,075,000.