BOE alleges East Haven overcharged for health insurance
"Since at least 2014-2015, it appears that the town has systematically overcharged the
Given that the
"This is a serious matter. If the board's calculations are correct, there is a risk that the town has been in violation of the charter by using a different methodology for setting rates for
"There were a few board members ... who were aware of this happening for a while, but they felt the timing wasn't right to bring it public. Myself, since I took over, I want full disclosure and full transparency with the public, with everyone," DeLucia said. "I (didn't) want to just go off and say this happened without seeing solid proof."
Upon becoming chairwoman, DeLucia said she kept wondering why nothing was done and had two separate individuals look into the matter.
"It's pretty astonishing. Honestly, I don't know how those who knew about it did not do something sooner," she said. "It took a person, an interim, to come for only a month and realize it."
Maturo, whose office received the letter
While Maturo said he isn't sure if the town plans on responding to the letter, he does "believe they have the wrong information." He said he's waiting until both Zullo and Rizza give him their interpretation of what they find out before he makes any further comments, though.
Zullo said he has contacted the town's health care provider and requested data over the past several years, as the letter sent did not include that information. Upon receiving the data, Zullo said they will see what the school board's claims and budgeted numbers were as well as take a look at the amount in the health insurance reserve fund.
Zullo said just because there is an overcharge, doesn't mean there was any wrongdoing.
"There are years where the town's medical claims are less than what we budgeted. It goes into the surplus fund for a bad year. Everyone's got this conception that an overcharge is a bad thing. An overcharge is intentional... because God forbid, that big (claim) comes down the road," he said.
This, Zullo said, is where the surplus in the health insurance reserve fund comes into play.
"At the end of the day, it's a reserve. It's intended to be a rainy day fund. It's intended to be a surplus in it. It's supposed to cover years where claims are very, very bad, so it's not unusual for towns to have
Rizza noted this isn't the first time something like this has happened. He said a similar issue was raised two or three years ago when a board member made a passing comment during a meeting.
Along with looking into the comment, which he said proved to be unfounded, he also had representatives from the town's health insurance come in and give a presentation.
"In order to try to assist the board members I brought in two (representatives) from
Rizza said he couldn't comment further until he talks with Zullo and draft a report to the mayor , who will then be included in the discussion and then a response letter will be sent.
"I'm hoping the town is going to say, 'Oh my God, we're so sorry. We didn't realize,' and in some way work with us to maybe put ... the money back into our school system in a way that will positively impact our students," DeLucia said. "I would like to sit down and see what went wrong, fix it going forward and see what we can to do to make it right for these students. They deserve to get what is owed to them, what is owed to the
[email protected]; @jesslerner on Twitter
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