Questions over dead employees' benefits

BUFFALO, N.Y. (WIVB) - Who is to blame for millions of dollars in health care premiums doled out by Buffalo City Hall to dead employees and their families?

That's the question taxpayers are asking. The city administration's official position is that the Human Resources Department dropped the ball.

While the city was able to recover some money, a lot of it is gone for good.

City of Buffalo taxpayer money, nearly $840,000, flew out the door for good.

Buffalo Corporation Counsel David Rodriguez said, "That $839,000 amount is lost."

That's money the city paid for family coverage policy premiums of dead retirees.

Common Council Majority Leader Richard Fontana said, "And for that money to be wasted is just a sin."

Who's fault is it?

Rodriguez said,"It was incumbent upon the city through the Human Resources Department to stop that benefit. We can't expect widows or children of deceased retirees to know all the details of family."

Enter Karla Thomas, the city's former human resources commissioner .

She was terminated by Mayor Byron Brown for "inadequate performance."

The mayor directed Thomas' department to acquire data from the Social Security Administration that would help identify deceased retirees.

"Because the directive was not followed, hundreds of thousands of dollars, almost $2 million initially in taxpayer money, was lost."

Thomas, during a hearing last year, said she inherited problems that have been around for decades.

Thomas said, "And for them to try to insinuate that I should be able to fix them in two years is absurd."

Should the city go after family members of deceased retirees who received coverage they should not have been getting?

Fontana says no.

"Some family members didn't know they had to call. Many don't. In fact, many people today still don't know that if your spouse passes on, and he was the city employee, or she was, then the remaining family members do no receive coverage."

Does the city's insurance carrier Blue Cross Blue Shield have a responsibility to make sure that only those eligible for benefits receive them?

Rodriguez said, "I think it's a two-way street and a relationship that need to be developed and nurtured. Obviously if we're paying someone to do work for the city, they should be looking out for the city's best interest. But, we're approaching this in a collaborative effort."

According to the City Comptroller's Office, all but a handful of the family coverage plans were used, which is the reason Blue Cross Blue Shield has given the city for not reimbursing family plan premiums paid.

Was the city able to recover any of the premiums paid?

News 4 was told that about $73,000 has been credited to the city, that represents single coverage policy premiums paid for deceased employees.

Obviously, those plans were not used.