EDITOR NOTE:  We have confirm that City County were given the information concerning the UNPAID MEDICAL BILLS AS OF 6-30-15 reference in this article by City Controller Russ Lllod  Jr..
 For the last several months 5th Ward City Councilman John Friend CPA has been telling anyone that would listen that the City of Evansville has about $4 to $5 million dollars worth of unpaid medical bills.  The City County Observer told Councilman Friend last week either produce us documentation that his statement is correct or stop talking about it.  Last night we received the attached e-mail from Mr. Friend that as of June 30, 2015 the City of Evansville had exactly $4,034,221.28 of unpaid Medical bills on the books to be paid out of the City General Fund.  At one point Mr. Friend  alleged that the City of Evansville had about $800,000 in the General Operating Fund.
For many months the City Controller and the Mayor office have been extremely quiet about this issue.  Members of City Council and the Main Stream Media seemly have been unwilling to engage the City Controller in  a direct and open dialogue about this serious financial  problem.  Obviously  it’s time for the media, taxpayers and City Council to ask City Controller Lloyd to respond to Mr. Friends charges concerning the unpaid city employees medical bills.
Also at the bottom of this document is the figure of $5,867,099.33.  Mr. Friend wrote that this was the General Total as of 6-30-15.  We have ask Mr. Friend to clarify in lay terms what this means.  Once he responds to us we shall update  you on his answer.
We also ask Mr. Friend to give us an update on how much does the City have in unpaid city employee health bills as of 8-1-15.
This definitely a developing story and we shall update you on any additional information about this issue.
LINK TO UNPAID MEDICAL BILLS AS OF 6-30-15
I trust Friend, but this appears to just be a spreadsheet. What is this we are looking at ? This is not a billing from a carrier. Is this self-insured claims ?
The part about the amount being due ‘Quarterly’ is also a mystery. Most medical billing/collection firms pounce–no 90 days before money due.
Please help.
Hey Dear Lime . .
This is what Russ passed out on Monday to the full /Council . .
Key Benefits has been paying the bills as the Third Party Adm and the agreement is that the City will reimburse to Key on a quarterly basis. The concern is that Key has been stretching it’s budget as well and riding the backs of the health care providers. Due to the City’s high level of expenditures in Health care, the providers will put up with the 90-120 day payment schedules. And, this Administration gets the listing of the bills that are being paid by Key which says that the General, Parks, and other funds know quite well what the needs are in the the hospitalization fund to mean the obligation. The transfers are not being appropriately make in order to make the General Fund look positive. In this case, instead of $900k in the General Fund, the number should have been a NEGATIVE 3.1 million.
Key Benefit Administrators is here in the City, 951 S. Hebron Avenue.
They must be a TPA, administering a self-insurance program. If they were owed $ 4 Million out of general fund at 6-30-15, the biggest question is
DID THEY GET PAID–as today is 8-21-15 !
I seem to recall that Russ’ previous private sector job was located in or around that address on Hebron.
https://youtu.be/zjedLeVGcfE
You have to wonder at what point the Medical providers will start refusing the Insurance(validation card) from the City Employees seeking Medical care,–and possibly require payment Up Front?
I remember the EVSC falling afoul of statute concerning the required balance that they had to maintain for their medical coverage program. It had to do with the pressure that early retirees were putting on the program, a situation they had not properly planned for, and one that required the Legislature to craft a quick fix.
We certainly need an explanation from the administration immediately, as the worst thing one can do is to allow this to continue.
I am with you on this Press. We simply cannot pretend that these serious financial deficits don’t exist or matter.
It seems to me though, that Councilman Friend has given us an explanation. It’s up to the Public to now demand accountability. …
Friend always overreacts to these cash shortage situations !
The answer, of course, is to offer other assets, besides Cash, to settle the bill with Key Benefits.
Offer them the Mesker Ampitheater and two city swimming pools to call it even. Problem solved !
Great Idea . . let’s give China Yosemite and Yellow Stone National Parks. . oh, let’s give Manhattan Island as well . . hey Tang stop flying above 12,500 feet without your oxygen mask.
Now, how in the hell do you pay 4 million in medical bill when the hospitalization fund has a NEGATIVE balance as of June 30, 2015 of 1.5 million, Absolute witnittery
I know not a thing about this supposed list of bills; however, it appears to be an allocation (note that the amounts for the 3 golf courses are the same and the last two listings are exactly the same) of the amount that should be charged to each fund and taken out of the cash balance of that fund and placed in the self Insurance fund to make the actual payments. The difference in the 4+ million figure and the grand total is that the 4+ is a subtotal of the General fund. The other amounts are separate funds. I think the issue that CPA friend was most concerned about is the fact that this allocation was not made before closing of the period ended June 30, as it had been in previous years. The result of this intentional inaction was the inflation of the cash balance of the general fund by over $4million. The administration is cooking the books to hide the true amount that they are overspending the resources of the city.
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Dead on my dear Mr. Lumley!!!!
City Council: $ 47,239 . . .
Why doesn’t City Council announce that they will not use Health Insurance . . . they will use their Employer’s Health Insurance or go on Medicare if over 65 ? That’s a $ 188,000 savings right there . . . keep both pools open for that money !!!
Is this why it takes SO LONG to get our Medical Bills paid??
Where is Wayne to explain to us peons how Friend is all wrong on this and can’t read a financial report properly.
The Indiana Code says the City Council serves as the Fiscal Agent of the City of Evansville. The City Council approves all expenditures. There are currently eight (8) Democrats and (1) Republican on the Council. John Friend and his fellow councilmen have no one to blame except themselves if there is a problem–by the way there is not a major financial problem..
Their will be at least four (4) new City Council members next year. The current Democrat controlled City Council has been an embarrassment for our great City with John Friend leading the pack.
Fortunately in a few months he will not be in that position any more.
Fact: The City financial condition is in good shape.
Wayne Parke
By George, Wayne, I think you’ve got it (except for your assertion there’s no major financial problem.)
Using that logic:
The House of Representatives is the Fiscal Body of the Federal Government. They write and pass the budget. There are currently 246 Republicans and 188 Democrats in the House. John Boehner and his fellow Representatives have no one to blame except themselves if there is a problem.
Did Wayne Parke just come out against Congressional Republicans?
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