Retirees for the city of Jamestown who fall behind in their health insurance payments may be facing penalties and could even have their policy canceled.

A memo from the city’s corporation counsel states that the city has encountered issues with regard to retirees not making timely payment on their health insurance premiums.

“The administration would like a policy with regard to specific time limitations and implementing late payment fees,” the memo states.

A resolution has been proposed to offset the rising costs incurred by the city for excess billing costs and alleviate possible losses due to non-payment of health insurance premiums.

The resolution notes that payments are due 15 days after the bill issue date. Any payment received on or after the 31st day after billing shall incur a 2% fee. Employees and retirees who do not pay in a timely fashion shall be subject to having their health insurance canceled on the first day of the third month of non-payment premiums.

Individuals who are canceled from the city’s health care plan due to non-payment shall not be eligible for reinstatement.

Individuals who have a hardship that renders them unable to make timely payments shall contact the city’s health insurance office and cases will be resolved on a case-by-case basis.

During the Jamestown City Council Work Session, the proposal was met with some concerns.

Councilman Jeff Russell, R-At Large, said there’s a number of issues with the city’s health insurance that need to be resolved.

“I agree that a policy needs to be implemented. Here’s my concern – we don’t have our own house in order,” he said.

Some of the concerns Russell noted included some employees and retirees being charged a co-pay when visiting Urgent Care, concerns with eye care coverage at certain local doctor’s offices, and bills that have been passed on to the insurance company that aren’t being paid in a timely manner.

“Until we get our own house in order and things get taken care of, I don’t think that we should have this policy put in place,” he said.

Mayor Kim Ecklund disagreed.

“I appreciate your concerns, but we can’t let retirees go six, seven months with a non-payment on insurance while they’re using insurance. That’s not fair to fellow employees, it’s not fair to the city and it’s certainly not fair to the rest of the retirees on the plan,” she said.

Ecklund added that they are working with the city’s insurance company to address the concerns raised by Russell.

Corporation Counsel Elliot Raimondo said Russell’s concerns and the city’s proposed policy are two different issues.

He said Russell’s concerns are rooted in the transition from when Blue Cross Blue Shield transitioned over to Highmark, which they are working on. But when retirees don’t pay their insurance, it can cost the city thousands of dollars.

Ecklund was asked how many retirees are falling behind on their payments. She declined to give specifics, other than to note it’s not just one or two cases.

The resolution is expected to be voted on by the full council at its meeting on Monday, May 20.