Health-insurance hikes cause headaches for muncipal budgets - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
November 29, 2016 Newswires
Share
Share
Post
Email

Health-insurance hikes cause headaches for muncipal budgets

Times Herald-Record (Middletown, NY)

Nov. 29--Spikes in health insurance rate from the state insurance program have local municipal leaders juggling higher-than-normal costs as they work to stay within an already tight tax cap.

Dan Depew, Town of Wallkill supervisor, said when he began planning his budget this year he was looking at projected increases from the New York State Health Insurance Program, or NYSHIP, of about 8.5 percent.

NYSHIP is the nation's largest public-sector health insurance program outside the federal government.

It covers about 1.2 million active and retired state, local government and school district employees and their dependents, most of whom are enrolled in NYSHIP's Empire Plan, according to the state Comptroller's Office.

Depew said that when NYSHIP provided its final rate increases around Nov. 10, the rate spike was bigger than expected.

Rates for NYSHIP's family plan will see a 12.17 percent increase, and those in the single plan will see a 11.23 percent increase.

Other plans, like Medicare plans for single people or those covering two family members, will see decreases.

The higher-than-expected increases added about $136,000 to the $3.4 million in health insurance costs Depew planned for.

But the announcement from NYSHIP came too late for Depew to adjust the town budget, which was already tight because of the state tax levy cap.

"We left $40,000 on the table to stay under the cap," Depew said.

Mike Sweeton, Town of Warwick supervisor and head of the Orange County Association of Towns, Villages and Cities, said Warwick will try to exceed the tax cap just to pay for increases in health insurance.

While the cap only allowed for a $128,000 increase in the tax levy, health insurance alone will cost $148,000 more, he said.

And what about governments that adopted budgets early, before they knew the final rates?

"Those who adopted a budget are stuck with it," Sweeton said.

Health insurance increases next year are a nationwide issue and not unique to NYSHIP. But the program's rates in particular affect local budgets, where public-sector unions often spell out the program's coverage in contracts.

Jian Paolucci, a state Civil Service Department spokesman, said Empire Plan rates for 2017 will increase an average of 8.4 percent from 2016, consistent with 2017 and lower than the estimated increase of 9.1 percent told to localities on Aug. 31.

He said the department does its data analysis on claims in September and early October to get the lowest rates.

"Although health-care costs continue to trend upwards nationwide, the department works hand-in-hand with the Division of Budget to ensure that premium increases remain as low as possible by identifying future plan savings and operational improvements," Paolucci said.

Depew said NYSHIP releases its final health insurance rates too late in the year for some towns to meet budget deadlines.

He said Wallkill will now have to take money out of contingency and possibly out of fund balance in order to pay for the increases.

Port Jervis Mayor Kelly Decker said he had been preparing for a 7.9 increase in health insurance from NYSHIP.

The final figures took him by surprise, too. Decker said the state needs to step in with more aid to municipalities.

"The state of New York is making it very difficult for municipalities to manage themselves," Decker said.

Decker said the state tax levy cap only allows Port Jervis to increase taxes by $5,900 next year. But NYSHIP's health insurance increases alone would represent a 3 percent tax increase -- $152,307.

Decker expects Port Jervis to exceed the tax cap, which requires a supermajority vote of the City Council.

The 12.17 percent increase for NYSHIP family plans was higher than Orange County anticipated, according to Justin Rodriguez, a spokesman for Orange County Executive Steve Neuhaus.

The county's budget line for an increase of $4.2 million for health insurance costs was off by $500,000. That increase represents just a small fraction of the county's $736 million budget.

Rodriguez acknowledged those increases are harder for smaller governments to manage.

Jim Quigley, Town of Ulster supervisor, said the increase in rates was an unpleasant November surprise.

"I went into budget season with a 7 or 8 percent increase with NYSHIP," Quigley said. "I share the frustration with my fellow supervisors."

jnani@th-record.com

___

(c)2016 The Times Herald-Record, Middletown, N.Y.

Visit The Times Herald-Record, Middletown, N.Y. at www.recordonline.com

Distributed by Tribune Content Agency, LLC.

Older

Experienced Asset Protection Attorney Explains how Domestic Asset Protection can be Coupled with International Asset Protection

Newer

Insurance Commissioner’s Enforcement Action against Zenefits Results in Multi-Million Dollar Penalty

Advisor News

  • The inheritance gap: Helping clients plan for money that hasn’t arrived
  • After the midterms: Addressing your clients’ tax concerns
  • Berkeley arts tax heads toward passage while public bank measure looks likely to fail
  • Americans’ sense of overall prosperity still ticks upward
  • Turning expanded eligibility into a better coverage plan for federal clients
More Advisor News

Annuity News

  • Annuity sales hit record $126.3B as RILA sales top $25B
  • More pre-retirees rethink retirement as income-planning concerns grow
  • AM Best Affirms Credit Ratings of Knighthead Annuity & Life Assurance Company and Merit Life Insurance Co.
  • Jackson reports record annuity sales, increases share repurchase authorization
  • Why the market doesn’t need more carriers
More Annuity News

Health/Employee Benefits News

  • STATE AUDITOR JAMES BROWN HELPS STOP ADDITIONAL $9.5M IN UNSUPPORTED PAYOUTS CONNECTED WITH OBAMACARE FRAUD SCHEME, BRINGING TOTAL SAVINGS TO $55.6M
  • Will CVS corporate break-up impact Aetna’s Hartford campus? Not for ‘time being’
  • Open health insurance enrollment: What it means for your taxes
  • AFTER TRUMP'S 'BIG, UGLY BILL' KICKED MORE THAN 46,000 NEW YORKERS IN THE HUDSON VALLEY OFF HEALTH INSURANCE EARLIER THIS YEAR, SCHUMER INTRODUCES NEW LEGISLATION TO REVERSE CUTS AND RESTORE HEALTH CARE COVERAGE
  • BENNET URGES ACTION AS COLORADO HEALTH INSURANCE PREMIUMS RISE FOR 2027
More Health/Employee Benefits News

Life Insurance News

  • Samsung Fire & Marine Insurance to Acquire Outstanding Stake in Canopius with KKR and KIC
  • Start estate planning before the family needs it
  • Best’s Market Segment Report: Health and Property Lines of Business Drive Hong Kong’s Non-Life Insurance Growth
  • AM Best Affirms Credit Ratings of Central States Indemnity Co. of Omaha and Its Subsidiary
  • National Life Group Approves $23 Million Dividends for 2027
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Insurvoice Lets Independent Insurance Agency Owners Analyze Every Customer Call in ChatGPT or Claude
  • Spectrum Weather & Specialty Insurance Celebrates 15 Years and Welcomes the Next Generation
  • Royal Neighbors of America® Increases Service Capacity
  • Benefits Studio Launches to Fill the Missing Middle of Benefits Navigation at $49/mo
  • Lauren Sinnott Named to Ragan’s Top Women in Marketing Awards, Class of 2026 
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.