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Justice Baisley

SUFFOLK COUNTY’S switch from the state’s insurance plan to a self-funded employee health plan was estimated to save up to $65 million. As a self-insured entity the county lost up to $9 million after it was revealed that defendant actuarial consultancy double-counted employees for certain insurance from 1998 through 2001. Alleging negligent misrepresentation and contractual breach, the county sought consequential and foreseeable damages, including the difference between the costs of the self-insurance and state plans. Although the court held that factual issues existed as to the parties’ agreement, it noted that defendant’s senior vice president – who stated that he was given population counts by the county and presented the information in different formats to the executive director of the county’s Office of Risk Management and Benefits – effectively admitted defendant’s errors by failing to explain its revised cumulative savings results.

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