The county has changed how it bills towns and villages for medical insurance, but it is still dealing with collecting the money.

"This is a bona fide charge to the towns, based on the information I've been provided by Blue Cross/Blue Shield," said David Farrell, county treasurer. "The money was extended on their behalf."

Any challenges would most likely be decided by a judge, he said.

He's talked with the Ways and Means Committee to talk about possible payment schedules. Towns and villages would have more than three years and several methods of doing so.

Some towns and villages obtain general health insurance through the county, which is self-insured. In November they were sent bills totaling about $338,280, with some municipalities, including Weedsport, hit especially hard.

The bills were from 2002 and the latter part of 2001. The towns will also be receiving bills for 2003.

The bills were the result of the treasurer's office using estimated rather that actual figures when they did the initial billing. The deficit was noticed earlier, but not audited until 2003.

The audit was completed in the summer, but the towns were not notified until later, after many municipalities had passed their budgets.

Farrell regrets the delay.

"I wish I had taken into consideration that the villages are on a different fiscal year."

Bills for 2004 were sent out in late December through early January, after the actual figures had been received from Blue Cross/Blue Shield and "something in writing" was received from the insurance company. This new billing method will be used from now on.

Although towns and villages have expressed anger and frustration over the late timing of the bills in meetings with the county, none have officially approached the county, reported Farrell, although two or three have been in contact with him.

Herb Marshall also reported that no towns or villages have officially refused to pay the additional charges.

"The village of Weedsport has been an extremely vocal critic," he said.

Marshall met with the towns in January to open the lines of communication and discuss the insurance problems.

"I purposely didn't ask them if they were paying or not," he said. "That's a legal question I don't have the answer to."

County employees are not asked to pay the difference if they are undercharged. But the county is self-insured and has its own policy, he said.

"The situation with the towns and villages is not comparable with the county," said Marshall. "There's a lot of things that enter into what is a fair outcome."

The bills came after many municipalities had just set their budgets for 2004.