Lower Taxes Good For Your Wallet And Your Health: The Health-Tax Link On Long Island

Housing prices, with an exception of a few areas, are significantly steep almost anywhere you go, but, here on Long Island it’s not just the cost of the home, but the property tax that’s likely the biggest burden. And, Suffolk is slowly but surely playing “catch-up” to Nassau. But, now Suffolk officials hope to ease the burden for homeowners via a waiver from The State that would entitle school districts to join a buying group geared toward negotiating lower rates for employee health care.

According to officials, public school funding accounts for over half the average homeowners tax bill and most of the recent increases. Plus, growing medical costs have added fuel to the financial fire.

However the Suffolk County Executive recently suggested that health care costs could be trimmed via a measure banning together the county’s 71 school districts in an effort to take part in special deals on behalf of employees, their families, and retirees, a number totaling nearly 40,000 and collaboratively giving the districts greater leverage in negotiations with health care providers.

The proposed buying consortium would make it possible for school districts to piggy-back on successful self-insurance programs that the county has taken on and replicate a model they it has created. And, officials note that the proposed plan offers greater benefits at a lower fee than the Empire Plan, which is the most commonly used program by school districts.

The county has been self-insured since 1992 and spends approximately $4,000 less per employee for health care than the typical school districts, according to officials. Plus, their plan offers coverage for 45,000 including retirees.

In general, districts spend an average of about $357 million annually for employee health care and join in a buying group is expected to save about $30 million from the bill.

However, authorities assert that an effective group can’t be formed without the waiver from The State. And they note that a collaboration of more than four government entities are treated as an insurance company and are often prone to more paperwork and regulation, which in turn limits schools for setting up a consortium for health car.

Suffolk County officials with that in mind, will push for a $175,000 grant to fund a feasibility study that examines how schools would buy into medical services as a group.