Jamestown Scrambles to Recoup Medicare Reimbursements and Reduce Tax Hike

Jamestown officials are working diligently to secure Medicare reimbursement dollars that could potentially alleviate the city's proposed 7.79% tax increase. During budget deliberations, City Council members discussed the transition of city retirees from the city's health insurance to Medicare, a move that could yield significant savings for the municipality.

Unlocking Untapped Savings: Jamestown's Medicare Reimbursement Opportunity

Retiree Transition to Medicare: A Cost-Saving Measure

The city has been actively encouraging its retirees to transition from the city-backed health insurance to Medicare, a move that has already reduced the number of people on the city's plan from around 310 to approximately 150. Council members emphasized the benefits of this transition, both for the retirees and the city's finances. Councilman Russell Bonfiglio, R-At Large, noted that the committee working on this initiative last year has not received any complaints from those who have made the switch, including those who have relocated to places like Florida.

Uncovering the $1 Million Reimbursement Oversight

Councilman Jeff Russell, R-At Large and Public Safety Committee chairman, revealed a significant oversight in the previous administration's handling of the Medicare Advantage Plan. According to Russell, the city was supposed to receive a $1 million reimbursement from Medicare as a result of the retirees' transition to the Medicare Advantage Plan, but these funds were "left on the table" and not pursued.

Navigating the Reimbursement Process: Challenges and Uncertainties

City Comptroller Erika Thomas acknowledged the ongoing efforts to recoup the $1 million reimbursement. She explained that the original contract, where the city would pay the first $25,000 and be reimbursed, did not attract a lot of participants. The city then transitioned to a new program, J1 and J2, where retirees faced no premium (J1) or a $50 premium (J2), which saw a significant increase in enrollment. However, this new program was not officially recognized by the state, leading to complications in the reimbursement process.

Accountability and Oversight: Lessons Learned

Councilmen Bonfiglio and Russell expressed frustration over the missed reimbursement opportunity, questioning what happened under the previous administration to allow this oversight. Russell, who was part of the committee that worked on the retiree transition, felt that the previous administration should have been responsible for pursuing the reimbursement, and he took some personal accountability for not providing more oversight.

Exploring Legal Options and Seeking a Resolution

Council President Anthony Dolce emphasized the importance of finding a resolution to the reimbursement issue, as it could potentially solve a significant portion of the tax increase. He suggested involving the Corporation Counsel, Elliot Raimondo, to explore legal avenues for recouping the funds. Comptroller Thomas cautioned that any reimbursement obtained would be a one-time windfall, and the city would need to consider the long-term sustainability of its finances.In the face of a substantial tax increase, Jamestown officials are determined to leave no stone unturned in their pursuit of Medicare reimbursements. By addressing the oversight in the previous administration's handling of the Medicare Advantage Plan and exploring all available options, the city aims to alleviate the financial burden on its residents and chart a more sustainable path forward.