MLC Offers $160M Health-Care Savings, Gets Tepid Response

HARRY NESPOLI: Help city without hurting members.

The Municipal Labor Committee Feb. 27 presented potential healthcare changes it said could save the city $160 million, but the group's leader said Labor Relations Commissioner James F. Hanley seemed cool to the proposal.

MLC Chairman Harry Nespoli said that $100 million of the money would come from the Health Stabilization Fund that was established as a safeguard against a dramatic increase in health-benefit costs. The other $60 million, he said, would come from a mix of initiatives that includes better administration of the city's healthbenefits program by both management and the insurers, and gaining permission to expand the choice of doctors who could be used by employees and retirees who live outside the metropolitan area.

Mayor Seeking $550M

Mayor Bloomberg had earlier this year asked the unions for $200 million in health-care savings, but last month revised upward his demand to $550 million, even as it became apparent that the city would receive more aid from the Federal stimulus package than had been anticipated.

MAYOR BLOOMBERG: Money lost en route from Albany?

Union officials have questioned the need, given the additional stimulus money, for their members to have to pay a share of their basic health costs. The Mayor has demanded that they pay 10 percent of their health premiums, as is currently done by state employees.

Mr. Nespoli said of the unions' proposal for savings, "Is it coming out of our members' pockets? No."

That may be why, he remarked, "Mr. Hanley wasn't too impressed with it."

The Labor Commissioner questioned that characterization of his response, then said, "A journey of a thousand miles begins with one step. We're working on it." No follow-up meeting has been scheduled yet.

Mayor Fears Albany Reduction

Their conversation came two days after Mr. Nespoli met personally with Mr. Bloomberg to discuss the impact of the stimulus aid to the city.

"The Mayor didn't give me any specifics other than what he got out of Washington for Teachers and police," Mr. Nespoli said, referring to aid that is expected to avert up to 15,000 education layoffs and allow for the hiring of 440 cops this summer.

He said, however, that Mr. Bloomberg made clear his concern that "what we're entitled to, the state is going to try to hold off providing. The Mayor said to me point blank, if we don't get our fair share from the state, we're going to be looking at massive layoffs."

He continued, "We know the state is in bad shape. I told the Mayor, 'If there's anything we can help you with by going up to Albany, let me know.' "