Lawsuit Seeks Injunction Against Health Care Premium Increases In 2025 Budget
JAMESTOWN — The union representing Jamestown’s police, firefighters and their retirees, have filed a lawsuit challenging an increase in their health care premiums included in the 2025 city budget.
Police officers and firefighters currently pay 23% of their health and dental insurance premiums. The city approved a 22% increase in employee health care premiums in its 2025 budget. The higher premiums are supposed to go into effect Jan. 1, but the unions are asking state Supreme Court Justice Grace Hanlon for a preliminary injunction to stop the increase because the grievance process outlined in the unions’ contracts can’t be followed between Friday and Jan. 1.
“The temporary restraining order and preliminary injunction should be put in place to preserve the status quo, as the award to which the petitioners are entitled to in arbitration will be rendered ineffectual without such provisional relief,” Charles DeAngelo, the attorney representing the union members and retirees, wrote in his lawsuit. “The union will agree to skip the steps of the grievance procedure in order to go directly to arbitration immediately. The parties can request an expedited bench decision to comply with that requirement.”
Health care premiums were increased after employee health benefit contributions were not increased based on recommended provider premium increases for the past three years — meaning taxpayers paid more of increasing health care costs than employees did from 2022 through 2024.
Negotiations between the Kendall Club Police Benevolent Association and the Jamestown Professional Firefighters Association Local 137 have been held throughout the year, though negotiations with the Kendall Club have gone to an impasse with a Public Employee Relations Board arbitrator appointed to mediate the contract. Results are mixed on negotiations with the firefighters’ union, with some points resolved and others still being negotiated. Impasse has not been declared.
Union members sent a letter to the city earlier this week asking why the 22% increase in health care costs wasn’t discussed during negotiations while requesting a meeting with city officials to explain the increase. DeAngelo asks several questions on behalf of the union members, including if there was a surplus in 2024 in the city’s health insurance line; if a surplus had been rolled into the city’s general fund to pay for non-employee health care costs; if the increase is related to the city’s experience rating, if the increase is related to the city’s stop loss coverage, if the city’s failure to increase rates incrementally over three years caused the 2025 increase, if the $1.3 million the city didn’t receive because it didn’t properly seek Medicare reimbursement from the Medicare Advantage Plan would have offset the 22% increase this year, and if the city has been looking for other health insurance providers.
Elliott Raimondo, city corporation counsel, said the increase in health care costs isn’t an increase in the percentage of payments the union members pay, but an increase in the cost of the plan. The cost the city is quoting to employees for coverage is $24,919.80 for a traditional family plan and $10,536.12 for a traditional individual plan. The cost for a hybrid plan is $23,763.24 for a family and $10,059.36 for an individual.
“The monthly premium for members should be 23% of these totals,” Raimondo wrote in his reply to the union’s inquiry. “The city had no control over the cost of these premiums and they are being borne across the city workforce. In as much as any notice was concerned, this was done for members to be able to change and review their enrollment status, individual to family, etc., not as a forum for the premium change. Additionally, please keep in mind, the health insurance premiums have not changed for the three years prior to this change in 2025.”