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NEW BEDFORD — The City of New Bedford and its public school district are both undertaking internal audits after finding they had been paying for the health insurance of former employees — such as employees who may have passed away.
The city “initiated an audit” and already has found “several inaccuracies in the provision of employee health insurance benefits” within the public school district, according to an emailed statement from José Gouveia, the city’s personnel director.
Gouveia added, “The School Department has begun partnering with the Personnel Office to make the necessary corrections. Going forward, the School Department will be conducting a monthly audit to ensure accuracy in all transactions.”
Barry Rabinovitch, the school district’s acting finance manager, recently told School Committee members that the district will run its own audit to “double check the work of the city” at a finance subcommittee meeting earlier this month. He said that the district could be eligible for reimbursement from its insurance company, BlueCross BlueShield, if an audit finds overpayment.
In addition to former employees who may have passed away, other potential cases of overpaid health insurance could include retirees who have aged out of full or partial coverage (which can happen once a person qualifies for Medicare) or employees who may have recently resigned or changed jobs. At this time, it’s not known if such cases have occurred.
Costs for health insurance have been an increasing burden for the schools, with $31 million budgeted for health insurance this fiscal year (which began in July). The more than 2,000 employees in the schools constitute by far the largest department under the city’s purview.
Neither the district nor city could confirm how many cases there may be of unnecessary payment for health insurance. At the December School Committee meeting, Mayor Jon Mitchell answered questions from The Light and said there may be “a handful” of such cases in departments outside of the public schools. Mitchell said he believed there could be more cases in the school department.
Heather Emsley oversees the school district’s Human Capital Services (its name for Human Resources) and was recently assigned to oversee the district’s review of health insurance costs. Speaking over the phone, Emsley said that she had no information about how the district previously reviewed its health insurance costs, but said the current effort represents a new strategy.
“This is something that will be done on a regular basis,” Emsley said. “It’s a new and improved way to make sure that health insurance records are accurate.”
The scope of this error — and how much it may have cost the city — are as of yet unknown. Overpayment for health insurance has happened to other cities and towns in the Commonwealth. In 2023, Chicopee officials said that about 1% of their $15 million insurance budget was lost to similar overpayments, according to Northeast Public Radio WAMC. Those officials blamed an outdated, paper-based management system.
“It will take a while, but the schools will have a report on it,” Rabinovitch told School Committee members. Emsley said she believed a report would be completed by January and presented to School Committee members.
To complete their audits, city and district employees will comb through up to five separate lists, including internal staffing records and insurance lists across several departments, Rabinovitch said.
Meanwhile, the school district projects spending about $2.5 million per month on health insurance. So far this year, actual costs have ranged from $1.9 million to $2.5 million per month.
Email Colin Hogan at chogan@newbedfordlight.org
Informative post. Appreciate the share
It seems ridiculous to me that the City, including its School Department, does not have a readily available AND up-to database of all employees and related expenses. Why does this problem exist?
Because people do not do their jobs as the crews did. We got pushed out and know it all’s have taken the positions led by a Ms. Knowitall old crew tried to guide but Ms. Knowitall interprets things her way. Should you put in input, you’re told, I’m in charge of Human Resources. Ask all the employees who have exited.nthere will be more to come. Much more.
Just another reason why it is time for a leadership change in City Hall, the Taxpayers of New Bedford deserve better.
Wasn’t not was
What a sad joke the city’s human resources department is!! Fire a police chief and not give him disability benefits but let’s keep people on the payroll/health benefits who have passed away. WOW. Great job
Pistol Pete, I hear yah, but it mainly the NBPS that is the one they found multiple. Let’s unite and give them hell.
Any job, anywhere with common sense have a cross check for deceased employees. This is what happens when employees with numerous years retire and someone steps in and thinks they know everything puts their hands on things because they think they know everything.
Finding who has passed away, should not take going through 5 lists. There is weekly payroll reported in by the clerk to the payroll office. The payroll is every 2 weeks. Believe me,mif someone is reported out 3 days in a row HCS is on it like a fly on ####. So again, it relates back to HCS, always not just beginning now, there has been a multitude of letters sent to employees about being out and warning them they need to improve attendence. Unfortunately, when one passes the can’t go on Frontline a report they are dead. No joke.
If you are at the school department and are a clerk, custodian, food service or maintenance worker if you are out 3 days the HCS will contact. That’s a guarantee, if you are in one of those positions, you are not allowed to be out. If you are out over 3 days, you better be dead because it is hell to pay when you return to work. Even with a doctor’s note. The job is simply not worth it.
All activity, meetings should be recorded. Why? Because the information provided and proven become mysteriously reversed. There should be a standard timeline.n7 days becomes just about a month and a half. This gives them enough time to create information to be fabricated and defaming. We have a right. All individual meetings should be transcribed, this will keep the dishonest, held to honesty.
Don’t understand why the answer will not be given in 7-10 days, 14 days the most. Prior 2014 answers were given adequately and within a certain timeline. Allowing more times allows more time for excuses. Facts are facts. The old Personnel office ran efficiently with 6 employees and the Health Benefits person was in the payroll office. The saying goes too many cooks spoil the broth, the broth can’t be made if each ingredient is added by a different employee. God forbid if one employee is out. No wonder why it takes forever to get answers, unacceptable. If it was you or I, we’d already be shown the door.
New Bedford Public Schools is wasting postage sending out medical info to retirees which should come only from city hall or the actual retirement board. Wasting more money
The New Bedford Public schools has so much waste in the administration. We need to trim the budget. Start there. Ps it doesn’t take a rocket scientist.
Incompetent!
Almost 2 months no update, UNACCEPTABLE!
Where does the School Committee stand on this incompetent performance.
To the new Business Manager. GOOD LUCK, you are really going to need it.
Not too sure how this can happen when the NB retirement board on orchard street has us sign a paper saying we’re alive. Looks like the clerks, custodian, maintenance. Food service have a better organized system than the school department. We workers always knew it but now it’s been proven. We have the best retirement board, it’s down in PRAB that things get behind and messed up. One bad apple, does make the rest bad. Once you could believe in the personnel office but when Dr. Souza retired, it’s been downhill ever since.
Where are the answers, stop giving them more time to cover up, what they’ve done. Was any of this involving the previous tech manager. Hopefully the new one doesn’t help make things magically appear. Time for all meetings recorded an time for no one on one meetings for cover ups
Now it’s passed 2 months, 2 months for something that should have been kept up on a daily basis. What date did this begin? Was it after the previous long time dedicated health benefits employee retired. I’d bet it is. By not making agendes personnel appointments readily available for residents, tax paying residents to view, is thought to be a cover up. They will be exposed this is only I tiny bit of the deceptive misleader ship in the school department HCS and the Superintendent should be fully liable too.
We demand answers.
Worst. Administration. EVER!
We demand those involved to be held responsible. Public information. No more tight lips. We have a right to know.
Dirty laundry. There’s plenty.
Time for a clean sweep of admin in the School Dept.
We demand answers, now, not months from now.
I live in New Bedford do the administrators. I know the answer, Rhode Island and Rochester there is no repercussion for their actions.
None! We want answers and we want them now. OneCitu Hall employee did not record 2 of my early tax payments along with many others and she no longer works there.
City Hall at least seems to hold the employee responsible, why doesn’t the school department?
We the residents of New Bedford will hold them accountable. We are the taxpayers, they are FIRED!
See follow up….
New info, March 6, spoiler alert, nothing’s been done. In 3 days it will be 3 months since this article. New Bedford residents need to demand answers. School Committee needs to demand answers,
Residents of New Bedford must demand answers. Next school committee meeting. On the steps of city hall. Across the street from the old high school downtown. Let’s stand in unity and demand answers, let’s hold the people responsible. One way or another. Peaceful protest.
School Committee meeting coming up, time to unite! Peacefully.
NBPS, posts school committee meeting April 14, 2025.
Wow, Facebook. Yikes!