Audit clears police union fund

Keith Paul

Wednesday, Sept. 13, 2000 | 11:58 a.m.

An audit of the Metro Police union's health insurance fund, aimed to allay officers' concerns of the plan's financial well-being, showed no wrongdoing on the part of union officials.

But former officials of the Las Vegas Police Protective Association claim there are still issues about the self-insurance plan that went unanswered and officers' concerns are still unresolved.

The audit of 1999's finances, released to the Sun Tuesday, expresses a concern that the fund didn't take in enough money to pay for the benefits. But the audit notes that changes were made in benefits and co-payments of participants in 2000 to make up for the shortfall.

The audit also accounts for all of the money coming into the fund, Lois Willis, Metro's comptroller, said.

"There were a lot of rumors circulating, and I or my own sources checked out each one," Willis said. "We determined not a lick of them were true."

What is true is that the plan has no long-range strategy for paying for the low-cost health insurance provided to retired police officers, Willis said. The union and Metro plan to bring in an outside consultant to look at the fund and the way it is managed.

Earlier this year officers called Willis to report allegations, rumors and concerns over the stability of the insurance fund. Metro ordered the union to conduct an audit, but after weeks of delay Metro took over the audit at a cost of $30,000.

Concerns over the insurance fund led to an attempt to oust union President Andy Anderson in April. The attempt failed, and Anderson dismissed two union officials. Four board members then resigned.

Anderson said the insurance was just an issue used by critics who wanted to take over leadership of the union. He was pleased with the audit results.

"I guess this proves that Andy Anderson isn't a thief," Anderson said.

At issue was the stability of the $15 million-a-year health insurance fund and the cost the management company was charging to administer the plan. The plan provides health insurance to about 9,000 people, including Metro officers and their family members, retired officers, North Las Vegas Police officers and some Las Vegas city marshals.

"We knew the audit was going to come back fine. The issue is they are still overpaying the management company," said Sgt. Toby Maldonado, who was appointed to the union board by Anderson and later expelled. "They looked at 1999, but we wanted 1998 (audited) when the $3 million (reserve) got wiped out."

Officer John Yacek, a board member who resigned after Anderson fired two appointed officials, said the insurance wasn't a political issue within the union, but one of growing concern about health coverage.

"The major concern of the police officers on the street is that they are being sent to collection (agencies) because the (medical) bills aren't being paid," he said. "In my opinion, I don't think an audit is going to matter to the patrol officer. We want our bills paid."

The union power struggle and concerns over the insurance plan have led at least 550 officers to quit the PPA since January. Police officers who are not union members still are insured through the PPA plan.

Anderson defended the union's actions and said the management costs may be a little higher than other health plans, but the company has served the union well. That is a claim Yacek disputed, saying officers have horror stories about bills not being paid.

"When you call (the company) with problems, you better thank your lucky stars if you get a call back," Yacek said.

Yacek and others have started a new union -- Las Vegas Law Enforcement Association.