By ANDY GARDNER and JIMMY LAWTON

MASSENA — Town Supervisor Joe Gray wants to combat the county’s plan to modify Workers’ Compensation contributions which would cost the town $700,000 next year, but data shows the cost will likely drop once Massena Memorial Hospital completes its privatization.

Gray said Wednesday he wants to seek bids to see if another insurance carrier could provide Workers’ Compensation coverage at a lower cost.

However, data from St. Lawrence County shows the hospital – which is in the process of privatizing and will soon no longer be operated by the town -- is responsible for nearly 97 percent of the town’s open claims.

County legislators recently voted to modify the Workers’ Compensation insurance contribution formula to a risk-and-use-based system, resulting in massive savings for many municipalities, but a 267 percent increase for the Town of Massena.

Ogdensburg will pay $200,000 more, but the county will save $700,000 each year. The majority of towns will see a decrease of flat contribution and for some the savings will be substantial. Brasher will see a reduction from $36,700 to $6,700 and Lisbon’s share will drop from $71,000 to $44,000.

Previously, property value in each of the county’s municipalities was used to help calculate contributions. Now some municipalities, especially those with large highway departments and paid police and fire services, are seeing increases, due to the risk and claims associated with those jobs.

Most Claims From MMH

The Town of Massena is being hit particularly hard by the change, largely driven by the substantial claims coming from MMH, according to data provided by the county.

This year, the town has had 16 Workers’ Compensation claims, 15 of which are from MMH. The county is projecting that number to reach 29 total claims by the end of the year, with 27 of them coming from the hospital.

According to data provided by the county, which serves as administrator for the program, new claims from the hospital have grown from 70 percent of the town’s total share in 2014 to 93 percent in 2017, while the other town entities covered under the program have reduced their share from 30 percent down to about 7 percent.

Currently, MMH has 32 open claims totaling $5,202,581.42. The total number of open claims for the entire town is 33, with costs estimated at $5,452,282.99. The other Massena departments covered under the compensation insurance program are the electric department, highway, and library.

So while Massena will likely continue to pay larger contributions while the hospital remains under town control, it would likely see a significant drop in claims once the privatization is complete.

But Gray said Wednesday he wants to look into the private sector, and possibly form a coalition of communities who are seeing large increases under the county’s new plan.

“Why don’t we reach out to other municipalities with a large increase … to see if we can put together our consortium and go to a carrier?” Gray said. “Say we’ve got x number of entities, this is our risk, give us a quote.”

Gray said his understanding is that 75 percent of the town’s share is because of Massena Memorial Hospital, but says the hospital denies refutes that claim.

“His (county Attorney Stephen Button) words were 75 percent of that is the hospital. He believes the hospital has had a spike in Workers’ Comp cases. The hospital does not believe that,” Gray said. “I think this approach is ridiculous. It’s ridiculous we weren’t involved.”

Town Bookkeeper Nancy Fregoe said this year’s payment for Workers’ Compensation insurance was about $150,000. The town paid $8,000, Massena Electric Department $11,000 and the rest was MMH’s share.

County’s Share Drops

Under the new policy St. Lawrence County’s contributions will drop by about $700,000, but the county will remain the largest single contributor.

In 2017, the county contributed $1.95 million of the annual $4.1 million cost. The county had 40 open claims. Its contribution under the new system is estimated at $1.26 million, which is about 30 percent of the over projected $4.3 million total.

St. Lawrence County “has a jail that probably has 80-plus officers with support staff, which I know is a high-risk work environment. They have a large DPW. How did theirs lower [$700,000]? Do we have an answer for that?” said Councilman Tom Miller, a former state corrections officer.

Echoing similar comments from lawmakers at Tuesday’s village board meeting, town board members said the county should recalculate their sales tax distribution if they’re changing Workers’ Comp.

“The sales tax equation isn’t fair,” Councilman Samuel Carbone said. “Where it’s generated it has to go back to. We’re plowing the roads, we’re maintaining the roads.”

“Very unfair,” Councilman Albert Nicola said.

Politics At Play?

Gray doesn’t think they will have luck swaying the county legislature.

“Small towns have a very strong influence on the legislature. We’ve been in the past and our concerns have not been addressed in a positive way,” he said. “I don’t hold out much hope that we’re going to get any preferential treatment.”

“I don’t think the board can just sit back and take this and not be vocal … the townspeople of Massena need some answers,” Miller said.

Similar frustrations were expressed in Massena village, where contributions will also increase $155,400 to $324,300. Some trustees there cried foul, while the mayor suggested he’d like to hear an explanation of the hike.

“It’s concerning on both folds. The shock of the announcement because of the lack of dialogue beforehand just amazed me. For municipalities like Massena to not have more … it just doesn’t make sense,” Deputy Mayor Matt Lebire said.

“I am not pleased with the lack of communication prior to doing this … Personally I’m fine with a fairer system,” Mayor Tim Currier said, however, “I added it up, I don’t quite understand it.”

“If they can prove to us this is warranted, how do you argue that? This plan is far more beneficial to us than to go to the private sector,” Currier said. “It’s a substantial amount of money from us to walk away from that plan because of our liabilities.”

But Trustee Tim Ahlfeld said he thinks there are politics at play.

“I think what you’ve got more than anything else is political posturing in Canton. It’s a Republican-controlled board. Just so happens three of the members in our area are all Democrats. Nice way to get back at them. Remember that next time you go pull the lever,” Ahlfeld said.

“That’s exactly what’s going on there. Republicans formed select committees, they met behind closed doors and they said ‘there you go. You sort it out.’”

Only two county legislators voted against the proposal, Lisa Bell and Greg Paquin, both Democrats who represent the Massena area. However, Democrats Tony Arquiett D-Helena, Rick Perkins, D-Potsdam, and Daniel Fay, D-Canton, all voted in favor of the change.