Senator Metzger’s Bill Protecting Middletown Schools’ Health Insurance Program Signed Into Law

Albany, NY...State Senator Jen Metzger’s bill (S1012) authorizing the Enlarged City School District of Middletown to create a health insurance reserve fund was signed into law last week, an action that is estimated to save the district $3.4 million. 

Following a complete analysis of the district's budget for the 2017-2018 school year, it was recommended that the District self-fund health insurance for its employees, given the substantial projected savings involved. The Board of Education then voted to leave the Orange-Ulster Health Care Consortium and create a self-funded health care program. The legislation introduced by Senator Metzger (SD-42) and signed into law Wednesday (November 20) enables the district to set aside a portion of the funds from the self-insurance program in a reserve fund to manage year-to-year variations in claims.  

“This legislation is about fiscal prudence, and the school district can now take the proactive steps it wants to take to manage a self-funded insurance program to the benefit of taxpayers," said Senator Metzger. "I thank the Governor for his support of this important legislation." 

“The passage of a health reserve fund is a tremendous relief to the Enlarged City School District of Middletown community as it ensures the district’s ability to continue to cover the cost of catastrophic medical bills without increasing the tax burden to our school community, as well as maintaining reasonable health insurance employee contributions. The Enlarged City School District is extremely grateful to Governor Cuomo, Senator Metzger, and the Legislature for their support regarding the authorization to create this necessary health reserve fund,” said Enlarged City School District of Middletown Superintendent, Richard Del Moro.

Amending paragraph (a) of subdivision 2 of section 6-n of the General Municipal Law, the Middletown school district is now added to the list of school districts that are authorized to create such a fund, joining Scarsdale Union Free School District, the Vernon Verona Sherrill Central School District, and the Minisink Valley Central School District. Assemblymember Aileen Gunther carried the bill in the Assembly.