MEA Joins Opposition To GHI-HIP Merger, Citing Fear on Costs

The Managerial Employees Association has come out against the merger of the city's two largest employee health insurers - Group Health Incorporated and the Health Insurance Plan of Greater New York - and the combined entity's conversion to for-profit status.

STEPHEN FERRER: Takes stand against merger.

After the group's board passed a resolution on the issue, MEA President Stephen Ferrer said June 24, it sent a letter to State Insurance Superintendent Eric R. Dinallo explaining its concerns.

Worry That Costs Will Jump

The organization, which advocates for city managers although it lacks formal collective-bargaining rights, echoed Mayor Bloomberg's objection that the reduction in competition - 93 percent of the city workforce is currently covered by GHI or HIP - could lead to increases in health costs for both the city and employees. Mr. Ferrer noted that just a 1-percent increase in premiums would cost the city $27.5 million, presenting the prospect that it would either reduce benefits or seek increased employee co-pays.

Noting that premiums under for-profit plans had increased by 80 percent between 2001 and 2006, Mr. Ferrer said, "The merger and then the privatization of GHI and HIP will fully expose four million New York State residents to the worst effects of this system."