Fear Impact on Employees
Activists Rally Outside GHI To Protest HIP Merger

By ARI PAUL

Chanting "they say privatize, we say organize," a group of rank-and-file union members and health-care activists June 20 rallied outside Group Health Incorporated's Manhattan headquarters to protest its proposed privatization and merger with the Health Insurance Plan of Greater New York.

The Chief-Leader/Pat Arnow FEARS MERGER'S A LEMON FOR WORKERS: Consumer advocate and political gadfly Ralph Nader said converting GHI and HIP into a single, private entity would put stockholders' interests and profit-making before client coverage. Looking on at center is New York City Transit Station Agent Marty Goodman.

The rally was a part of a nationwide day of protest against health insurance companies and the for-profit health-care system. The State Superintendent of Insurance is considering the merger and conversion of the two firms that provide health insurance to 93 percent of city workers, and some union activists fear that the merger will translate into higher health-care costs and reduced coverage. Mayor Bloomberg has opposed the merger.

Nader Sees Conflict of Interest

"It is a system that increases premiums without limit, it increases co-payments, it increases deductions, it increases exclusions," presidential candidate and longtime consumer advocate Ralph Nader said of the for-profit health insurance system during the rally. "So this GHI-HIP merger transfers the fiduciary responsibilities of a non-profit health insurance system to its patients to a commercial obligation of a corporatized health insurance company to its shareholders, which includes the top executives. There's a serious if not illegal conflict of interest here between the heads of GHI converting to a for-profit corporation in return for millions of dollars to the top executives."

Activists from Transport Workers Union Local 100 and the United Federation of Teachers voiced opposition to the merger and blasted their union heads for not actively fighting it. Local 100 President Roger Toussaint, who is in favor of universal health care, has remained silent on the merger. UFT President Randi Weingarten, who also chairs the Municipal Labor Committee, told State Superintendent of Insurance Eric R. Dinallo in May that the MLC had concerns about a single for-profit entity and that the coalition was prepared to oppose it.

Questions Move's Necessity

"We don't see any financial reason why the conversion needs to be approved," said Chuck Bell, the program director of the Consumer's Union. "HIP has over $900 million in financial reserves and as recently as 2005, they've purchased a for-profit HMO in Connecticut for $350 million, so this is not a non-profit health plan that's short of money."

John Powers, a Teacher at Liberation High School in Brooklyn, told the crowd that the day before the UFT Delegate Assembly passed what he called a weak resolution in response to the merger, despite his effort to push a resolution that would oppose it.

"It only spoke a little about the background regarding the GHI-HIP merger," he said. "It didn't show a great concern about the fact that once it goes public there is a need to turn a profit - that they have to answer to the stockholders."

According to Mr. Powers, the assembly's resolution asked for a meeting with Mr. Dinallo and guarantees against any adverse effects on city workers.

"Our point is: 'how can you get these guarantees'" Mr. Powers said. "We understand how corporations work."