Thursday, Aug. 1, 2002 | 11:08 a.m.
Taxpayers are on the hook for nearly $2 million in unpaid medical bills from a defunct Metro Police union insurance plan.
A joint Las Vegas-Clark County financial oversight board Wednesday approved an additional $1.99 million to Metro's already approved $319 million budget to pay for the medical costs. The full Las Vegas City Council and Clark County Commission still must approve the request.
The old self-insured health plan for the Police Protective Association -- a union for rank-and-file police and corrections officers -- drew criticism from officers who said claims were slow to be paid, leading to some collection notices, and criticism from Metro officials who were concerned with the viability of the plan.
In the new contract with Metro, the insurance plan was overhauled and a health plan trust was set up to oversee the self-insured plan.
The $1.99 million will be used to pay back the trust for money put out to pay off the remaining claims from the old insurance plan, said Karen Keller, executive director of Metro's Office of Finance.
"The old plan didn't have sufficient resources to pay off the claims," she said.
Keller said negotiations were held to cut down the amount of claims owed.
"Some gave us some discounts, others did not," she said. "We did our best to keep this number as low as possible for the taxpayers."
Keller said the outstanding claims ranged from $10 doctor visits to thousands of dollars for medical treatment.
Metro officials' concern came in May 1999 when the cash reserves in the old plan dwindled from $3 million to about $100,000. The $17 million-a-year program covered about 8,000 people including most of Metro's rank-and-file officers, North Las Vegas Police officers and some other police and civilians.
An independent audit last year paid for by Metro showed that while there was no wrongdoing, the long-term financial health of the plan could be in jeopardy if revenue was not increased.
Some officers last year and in 2000 expressed concern that the insurance plan would fail, leaving taxpayers with the bill.
The plan also caused a yearlong power struggle inside the union. In April 2000 Dan Holley, then the PPA vice president, tried to have union president Andy Anderson removed, citing concerns over the health insurance and alleging the union was overpaying for the administration of the insurance.
The move failed and Anderson removed Holley and another PPA board member he had appointed. That move led to the struggle that culminated in an upstart union vying for the right to represent the officers, but officers voted in May 2001 to retain the PPA.
Current union chief David Kallas said the new plan has none of the issues of the old plan. While the new health insurance remains self-funded, there is a trust in place with Metro, the PPA and union representing Metro supervisors on the board.
"There are no funding issues with this plan and no management questions," Kallas said. "This is a brand new plan."
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