One-year reprieve for insurance plan

SOUTH PORTLAND — Following 90 minutes of debate, during which City Manager Jim Gailey allowed, "some strong words were exchanged," the South Portland City Council on Sept. 5 voted 5-2 to end its tax-funded health plan effective Nov. 30, 2013.

After that date councilors may continue to enroll in the city's health insurance, possibly saving money over private plans obtained on their own or through other employers, but they will have to foot premium expenses out of pocket.

Councilors Rosemarie De Angelis, who does not take the health benefit and wanted to end it immediately, and Tom Coward, who has a family plan costing more than $14,000 and stumped for the status quo, both voted against the one-year reprieve.

Councilor Gerard Jalbert, who offered the one year deadline, said Thursday that his intent was to end inequity between those councilors who take the health benefit and those who decline it, limiting their compensation to a $3,000 stipend. Jalbert's proposal ended up trumping the original motion, presented by Mayor Patti Smith, which would have let sitting councilors continue the benefit until the end of their terms, but decline coverage to anyone elected to the council this November and beyond.

That, effectively, would have meant supplying health care to just Councilor Tom Blake, who also takes a family plan. In addition to Blake, three other councilors now accept the health benefit, but Jalbert has vowed to cancel it in January when he become eligible for a coverage through his employer, Coward is expected to ascend in November to a Cumberland County commissioner seat (given no other candidates on the ballot), and Maxine Beecher is facing term limits following the November election.

"Personally, I just couldn't see someone new on the council not getting health insurance and, yet, sitting right next to someone who may get it for as much as two more years," said Jalbert.

City councilors in South Portland have been eligible for fully-paid health insurance plans since 1977. Questions were first raised about the legality of the plan in 2008 by local resident Dan Mooers, because the city charter makes reference to the $3,000 stipend only.

After several meetings on the topic in 2009, the issue came to a head again last fall at De Angelis' behest. After the council appeared ready to drop the issue, resident Al DiMillo, a Current columnist, filed suit in Cumberland County Superior Court. DiMillo dropped the suit in June on the promise by Smith that the matter work return to a future workshop agenda.

DiMillo continued to argue Wednesday that the benefit violates the city charter, but Jalbert said Thursday he remains convinced by an opinion filed by City Attorney Sally Daggett, which argues that the health insurance benefit is allowable under Maine's health insurance code despite the absence of any reference to it in the charter.

"We had a competing opinion for another attorney, but he only examined the charter and didn't look at state rules at all," said Jalbert. "These things all work together."

For her part, De Angelis voted against Jalbert's compromise measure, even though she was the one to second it.

"I did that to get it on the table. I will always second anyone's motion for discussion," she said, chastising her peers afterward for failing to second either of the two motions she made during the debate.

"Ultimately," she said of the one-year stay of execution, "I didn't feel I could back off of my original position, that this health insurance benefit is unfair, it is unequal, and it is illegal."

Councilors may get a chance to readdress the issue before the health benefit expires. Throughout the process, Blake has continued to assert the need to reassess how councilors are compensated, possibly leading to a charter amendment process. Blake has called for a blue-ribbon commission but in the near term it appears a future council will have to suffice. 

Smith said the issue has yet to be scheduled, but could make a workshop agenda as soon as October.