Issued Date
July 14, 2023
Audit Objective
Determine whether the Patchogue-Medford Union Free School District’s (District) health insurance buyout program is cost-effective.
Key Findings
Although the District’s health insurance buyout program is generally cost-effective, the District could achieve greater savings by modifying the terms of the program. For example, the District should review the eligibility requirements of the program for married couples and family members employed by the District. For the 2021 calendar year, we found the District could have saved $73,966 if it had more cost-effective buyout requirements.
Key Recommendations
- Perform a cost-benefit analysis and review the District’s eligibility requirements to determine if the program is implemented in the most prudent and cost-effective manner.
- At the expiration of the current collective bargaining agreements (CBA) and individual employment contracts (contracts), consider negotiating with the various unions and individuals to exclude eligibility for health insurance buyouts to employees covered by the District’s same health insurance plan through a spouse or parent employed by the District.
District officials agreed with our recommendations and indicated they planned to take corrective action.