Montclair Councilman Comments On Health Benefit Controversy

MONTCLAIR, NJ — When Montclair Town Councilman Peter Yacobellis was elected in 2020, the town’s human resources department put a packet of paperwork in front of him and asked him to select health care options. But Yacobellis said he never thought to ask a simple question: Do I qualify for them?

Now, Yacobellis and his peers on the council have been caught up in a controversy surrounding health benefits – and like other Montclair residents, he is feeling the frustration.

The municipality’s chief financial officer filed a gender discrimination and retaliation lawsuit against Montclair and its now-suspended town manager earlier this year. Part of the suit involved her concerns that town council members who logged less than 35 hours or more in a “fixed workweek” were ineligible for benefits under the New Jersey State Health Benefits Program – which she alleges were ignored.

Last week, the New Jersey Attorney General’s Office issued a subpoena to Montclair Township requesting pay records, time sheets and attendance logs for all of Montclair’s town council members dating back to 2011, although the reason is unclear, Montclair Local reported.

COUNCILMAN: 'QUITE FRUSTRATED'

On Monday, Yacobellis discussed the situation in an email to the community. His full statement follows below.

“This summer I was frustrated to learn from our law department that in their opinion (which I also recently learned was the opposite of the previous Town attorney's long-standing opinion), the state health insurance that the Township offered to me and my colleagues shouldn't have been offered to us. I know now that this was prompted by our CFO Ms. Rao's complaint filed against the town. I also have learned that the issue dates back multiple to 2011, on and off, depending on the year and whether the Township was providing healthcare through the state plan or a private plan to the Mayor and Council.

“Like most employees starting a job somewhere, when I was elected in 2020, Human Resources put a packet in front of me and asked me to select my benefits by filling out various forms. I never thought to ask if I qualified for the benefits or stipends in lieu of benefits, or not. They were presented to me in a proforma manner. When I learned about the legacy of this issue and the differing points of view by different Town Attorneys, I sought another opinion through our external labor counsel. On September 28th, we received guidance back from external labor counsel that in their view, the Mayor and Council Members shouldn't be receiving healthcare through the state plan.

“The situation is complicated for me because I met key criteria for receiving state health insurance, including that the Township has been my primary employer; I don't have another employer offering me health insurance; and I generally have worked full time hours for the Town (though not as a fixed schedule). I also just didn't know this was a thing until this summer.

“Ultimately I decided it would just be best if I sought coverage elsewhere. I explored getting onto my partner's benefits and I also looked into rejoining the World Trade Center Health Program for rescue workers that I had previously participated in. These scenarios would have meant changing providers one or more times in a short period of time, which I couldn't responsibly do given the sustained care that I'm under for multiple health issues. Ultimately in November I purchased insurance on my own through the Affordable Care Act State Exchange open enrollment, to take effect on January 1st, which allows me to continue my treatment with my existing providers without interruption.

“I'm quite frustrated by this situation. Public service should be affordable for anyone willing to serve and it's not. I knew that when I got into this. But losing healthcare makes it even more challenging. The premium costs will now eat up the tiny salary of $105 that I make per week being a Council Member. I'm also very disappointed for how this situation has been handled. If the law says we aren't entitled to health insurance, then it shouldn't have been offered in the first place.

“I wanted you to hear this from me and to have my explanation. Thanks for reading.”

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