Mayor Bloomberg has discovered the secret for saving the city $363 million in health care costs -- the threat of competition.
Bloomberg disclosed on his WOR Radio show today that Emblem Health, the city's longtime insurer, has said that for the first time in 15 years it won't increase premiums if it's contract is renewed next year.
The mayor said that would stabilize the city's annual health insurance tab at $6.4. billion and avert an increase of $363 million that had been anticipated in fiscal 2015, which begins on July 1.
Without changes, the city projected its health care bill would skyrocket to $8.3 billion in 2017.
Bloomberg said Emblem acted after his administration announced plans to test the market and seek new bids for coverage.
"It just shows how overpriced these services are," said the mayor.
Emblem covers about 95 percent of the city's employees, retirees and their families.
"We were convinced that city workers and retirees were not getting the best possible care at a competitive price," said Deputy Mayor Cas Holloway.
"Emblem Health's virtually unprecedented decision not to seek a rate increase for next year shows that we were right."
The mayor loves to talk up "competition" and "free markets" when it comes to public education.
Apparently it's a new idea for him when it comes to the companies that provide city employee benefits, however.
Of course I've always assumed he was full of crap with his free market and competition talk on most things.
I can't think of a mayor who's loved no-bid contracts with outside companies that have overrun costs of millions of dollars more than Mike Bloomberg.
That's how CityTime happened.
Same with the 911 system overruns.
In any case, here we are with $363 million in health care savings for fiscal 2015.
Let's remember that when the next mayor, whomever that is, claims poverty and says employees simply must contribute to health care costs or New York will immediately turn into Detroit.
For that matter, let's remember the next time some retired Unity hack writes the same crap.
$363 million in health care savings.
And that guy is (a Unity hack)!
ReplyDeleteAwesome post here. That's for it.
Thanks for the kind words. I wish that our union would use it as a guide when contract negotiations come around. Alas, I suspect they will follow the Unity hack they have on their payroll.
DeleteAnd I will bet that crappy Emblem could do better than that if presented competition.
ReplyDeleteEmblem Health, the company that loves to apply to your deductible and reimburse little, even when that deductible is finally met.
Those folks who think that retirees are the apple of the eye of the UFT, please note that health coverage for retired UFT members is about $230. per month. This is just for GHI, does not include union dues, or SHIP. DC 37 does not have any charge for retiree health benefits.
Good points. Good points.
DeleteWell done.I appreciate.
ReplyDelete