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Board rejects Comptroller resolution to set citywide health coverage defaults and waiver minimum
Summary
The Board of Estimates considered a resolution from the Comptroller's Office proposing default enrollment (opt-out) for city health insurance and a $5,000 minimum health-care waiver credit. After debate and an unsuccessful amendment effort to remove the waiver-credit provision, the board voted to deny the unamended resolution.
The Board of Estimates debated and ultimately denied a resolution introduced by the Comptroller's Office on July 16 that would make health-insurance enrollment the default for city employees (opt-out rather than opt-in) and establish a $5,000 floor for the waiver credit given to employees who opt out and verify outside coverage.
Kasey Kelleher, deputy chief of staff for the Comptroller, described the resolution as a response to a 2024 Office of the Inspector General report that identified a significant number of Department of Public Works employees who were working without health insurance. Kelleher said the resolution sets a baseline so that employees who opt out would receive a consistent waiver credit and noted that the measure would not prevent bargaining units from negotiating higher amounts.
Board members, including City Administrator Faith Leach and other administration officials, raised concerns that the measure could interfere with ongoing collective-bargaining negotiations and said the administration preferred to address the issue through direct negotiations with unions. Leach and other administration officials said the city had already taken steps after the OIG report to enroll many DPW employees and to run targeted outreach; the administration also stated that fewer than 5 percent of city employees currently opt out of coverage.
Comptroller Bill Henry moved an amendment to remove the waiver-credit section and leave only the opt-out default; that amendment was seconded but failed in a voice vote. The board then voted on the unamended resolution; several board members voted nay and the item was denied.
During the discussion participants cited several figures from the OIG review and subsequent outreach: the OIG had identified roughly 135 employees not enrolled (the comptroller referenced about 140); city staff said they enrolled 131 of those employees after outreach. Speakers also noted the city employs about 13,500 people. The board did not adopt the comptroller's resolution.
