[Nyclocal] MLC Has New Doubts About Advisability Of HIP-GHI Merger

[William Wharton]

--- noprivatization <noprivatization at yahoo.com> wrote:

> To: coalitionagainstprivatization at yahoogroups.com
> From: "noprivatization" <noprivatization at yahoo.com>
> Date: Tue, 03 Jun 2008 01:31:59 -0000
> Subject: [coalitionagainstprivatization] MLC Has New
> Doubts About Advisability Of HIP-GHI Merger
> 
> From the Chief Newspaper, News of the Week June
> 6,2008
> 
> MLC Has New Doubts About Advisability Of HIP-GHI
> Merger
> 
> By ARI PAUL
> 
> The Municipal Labor Committee May 29 asked State
> Superintendent of
> Insurance Eric R. Dinallo to halt consideration of
> merging the two
> giant health-insurance firms for city workers into a
> for-profit entity
> until the group meets with the state to voice its
> concerns.
> 
> RANDI WEINGARTEN: Fears premium rise, benefit fall.
> The Health Insurance Plan of Greater New York (HIP)
> and Group Health
> Incorporated (GHI) provide more than 93 percent of
> city workers with
> health insurance, and some worker advocates have
> said that the
> conversion would result in higher premium rates and
> lesser benefits.
> 
> Concern About Execs' Salaries
> 
> "The new information involves allegedly exorbitant
> executive
> compensation and creates a possibility that any sale
> of the newly
> created for-profit entity could lead to higher
> premiums and reduced
> health-care benefits," United Federation of Teachers
> President and MLC
> Chair Randi Weingarten said in a letter to Mr.
> Dinallo. "Given this
> new information, we are prepared to oppose the
> conversion. We request
> that no action be taken until we have been given an
> opportunity to
> explain our serious concerns."
> 
> Mayor Bloomberg previously voiced his opposition to
> the conversion to
> Mr. Dinallo last month, calling it "bad policy."
> 
> The Coalition Against Privatization, which includes
> rank-and-file UFT
> and Transport Workers Union Local 100 members, held
> a rally against
> the merger outside of GHI's Manhattan headquarters
> May 30 and planned
> to stage another one this month. It had previously
> been critical of
> union officials who had stayed quiet on the issue.
> 
> "I think it's very good news," said coalition
> organizer Billy Wharton
> of the MLC's move. "I think for us it's a victory
> breaking through the
> silence."
>  
> 
>