For Immediate Release January 22, 2009
Contact: William Wharton (718) 869-2279
NYS Department of Insurance Responds to Emblem Health Freedom of Information Request
On January 22nd 2009 Michelle Birnbaum, the Legal Assistant at the Office of the General Counsel of the NY State Superintendent of Insurance issued a memo to Michael D. Fullwood, the Executive Vice President of Emblem Health Inc. (GHI & HIP), requesting that he issue a statement, within ten days, as to why the company’s draft application for conversion to for-profit status should receive an exemption from NY State Freedom of Information Laws. The request comes in response to a Freedom of Information Law (FOIL) request (no.:2008-001868-NYC) made by William Wharton of the Coalition Against Privatization (CAP).
Emblem Health had, in December 2007, made an application to convert itself from a non-profit corporation to for-profit status. However, in early 2008 the company rescinded its application in the face of widespread criticism from community members, healthcare advocates and a series of demonstrations organized by CAP. At a late May 2008 meeting with NY State Deputy Superintendent of Health Troy Oeschner, Mr. Wharton was informed that Emblem Health has submitted a “draft” copy of a new application. This document was subject to review by the final decision-maker in the for-profit conversion, NY State Superintendent of Insurance Eric Dinallo.
This document was not offered for public review by either the Department of Insurance or Emblem Health. The above mentioned Birnbaum-Fullwood memo indicates that Emblem applied for an exemption from FOIL regulations based on the need for “trade secret protection.” Wharton’s FOIL request was made in October 2008 and after months of negotiations is now being acted on by the Superintendent of Insurance. CAP has called for the public review of all documents related to Emblem’s application, the creation of an impact analysis study and more public hearings on the issue.
CAP and other healthcare activists have raised concerns about the public health issues connected to the Emblem Health for-profit conversion. Reports issued by the consumer advocacy group the Consumers Union indicate that premium increases, increases in denials of care and a shrinking of the subscriber pool often accompany for-profit conversions. New York City Corporation Counsel Michael Cardozo suggested that a for-profit Emblem Health might swiftly move to drop less profitable subscribers such as Medicare and Medicaid recipients from the plan. CAP has run a grassroots campaign against the proposed conversion which has featured public demonstrations in front the offices of the Superintendent of Insurance, GHI and HIP.
For more information about CAP or to receive a copy of the Birnbaum-Fullwood memo please email noprivatization@yahoo.com or call William Wharton at (718) 869-2279.
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