Town of Massena approves insurance switch to AARP for less-costly Medicare supplement

MASSENA — Town retirees on a Medicare supplement soon will have a new health insurance plan, a change that will save the town tens of thousands of dollars annually.

The Town Council voted 4-0 last week, with Councilman Charles A. Raiti absent, to adopt a policy provided by AARP United Healthcare.

The policy will cost the town more than $101,000 less than the current one. The town now pays $162,096 a year for its Medicare supplement program for 22 retirees, provided by the New York State Teamsters Council Health and Hospital Fund. The new policy, delivered through Willer Insurance Agency, will cost the town about $55,928 annually.

The policy would offer no deductibles and no co-payments for retirees' medical visits, an improvement over the current plan. But the new policy will have much higher out-of-pocket maximum prescription cost. The current out-of-pocket maximum cost for prescriptions under the Teamsters is $500; the new maximum will be $4,550, according to insurance agent Paul Willer.

To help defray those costs, the council plans to reimburse retirees for any prescription expenses over $500 and less than $2,000. Reimbursement for prescription costs exceeding $2,000 will be considered on a case-by-case basis. Town officials still are working out the details of the reimbursement process.

But even with the reimbursements, the town will still save a lot of money, according to Town Councilman John F. Macaulay.