Waste of the Day: Double Dipping Local Benefits
Topline: Almost 100 retired workers on Long Island, NY, have been double-dipping on their taxpayer-funded health insurance — some for more than two decades.
A June 16 audit from the Nassau County comptroller found $1.4 million in benefits paid to former employees’ spouses, who themselves were already receiving benefits from a different county.
Key facts: State law and union contracts require Nassau County to cover former employees’ Medicare Part B premiums once they reach age 65. The standard premium is $203 per month and covers doctor’s visits and medical supplies.
The county also covers premiums for retirees’ spouses. But beneficiaries are required to complete a signed and notarized form attesting that they are not simultaneously receiving health insurance benefits from any other source.
County auditors found that 94 of the 3,690 spouses on retirees’ health plans already had insurance and were pocketing the extra money. Thirty-nine admitted to it. The other 55 have not responded to the county’s letters and phone calls demanding repayment. No one has been referred for prosecution.
The county has recovered $258,172 and will set up payment plans for retirees who cannot afford the debt.
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Critical quote: “Preventing the improper ‘double dipping’ of health benefits can be complex, particularly given the coordination required across multiple plans, carriers, and eligibility systems,” County Comptroller Elaine Phillips wrote in the report. “While it is not always possible to identify or stop every instance in real time, Nassau County is firmly committed to safeguarding the integrity of its benefits program and will take all reasonable and lawful steps to prevent duplicate coverage and payments.”
Background: Some forms of “double dipping” are perfectly legal but have drawn criticism for diverting resources away from taxpayers.
Open the Books has identified thousands of employees nationwide who retired from public service in one town only to take another city job elsewhere, simultaneously collecting a salary and a pension.
Social Security pays duplicate benefits for unemployment insurance and disability insurance, costing roughly $220 million per year.
Summary: While most retired public servants may be receiving their benefits legitimately, consistent audits are always needed to discourage fraud.
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