ICE Resolution on Opposing the Privatization of GHI/HIP

Resolution on Opposing the Privatization of GHI/HIP

Independent Community of Educators

March 5, 2008 Delegate Assembly

Whereas, in 2005 the healthcare providers GHI and HIP filed for permission from NY State to merge thereby creating a new company named Emblem Heath; and

Whereas, on December 17, 2007 the currently not-for-profit healthcare providers GHI and HIP filed for permission to convert themselves into a new for-profit company called Emblem Health; and

Whereas, the merger of these two companies will result in the creation of a company with a monopoly status over the healthcare plans of municipal workers in New York city with nearly 93% of the work force insured by Emblem Health; and

Whereas, such a situation means that a 1% percent increase in premiums will result in a $27.5 million charge against the budget of New York City; and

Whereas, New York City officials will most certainly attempt to pass on such increases to members of the UFT; and

Whereas, conversion to for-profit status will remove safeguards in place since the 1940s which have served to shield New Yorkers from the worst effects of the national health care crisis; and

Whereas, Non-profit status prevents GHI and HIP from spending more than 15% of its budget on administration thereby placing limits on salaries for executive officers; and

Whereas, Non-profit status places limits on GHI and HIP's ability to increase premiums; and

Whereas, Non-profit status prevents GHI and HIP from receiving private financing thereby insuring that the provision of health care is prioritized over the accumulations of profit; and

Whereas, the conversion to for-profit status means that executives at Emblem Health are legally mandated to enhance profit margins; and

Whereas, the private financing of Emblem Health may make it a target for a takeover attempt by an out of state provider thereby exposing its policy holders to the unpredictability of corporate health care; and

Whereas, the premiums of private health care firms have, according to the Bureau of Labor Statistics, had cumulative increase of 80% in the last 7 seven years; and

Whereas, the privatization of healthcare has resulted in a system which excludes more than 46 millions from coverage; and

Whereas, major healthcare rights organizations such as Healthcare NOW!, Physicians for a National Healthcare Program, Metro NY Healthcare for All, New Yorkers for Accessible Health Coverage, Latinos for National Healthcare, and the Consumers Union have spoken against both the merger and conversion of GHI and HIP; and

Whereas, dozens of retirees from the UFT, the TWU and D.C. 37 spoke against the merger and conversion at a public hearing held by the State Superintendent of Insurance on Jan. 29, 2008; and

Whereas, the UFT has maintained a consistent commitment to provide its members with the highest quality healthcare available; therefore be it

Resolved, that the UFT will organize a member write-in campaign to NY State Superintendent of Insurance Eric Dinallo asking him to reject the proposed conversion of GHI/HIP to for-profit status; and be it further

Resolved, that the UFT will convene a meeting of active union members, retirees, healthcare groups and community organizations to prepare an educational and activist strategy to oppose the privatization of GHI and HIP; and be it further

Resolved, that UFT conduct public hearings in order to solicit ideas for reforming GHI and HIP while preserving their not-for-profit status.

ICE (Independent Community of Educators)

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ICE
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Jamaica, NY 11421
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