Health insurance proposals lead to NYC lawsuit

New York Health Insurance

The Labor Committee has sued New York City in an effort to try to stop it from changing its medical benefits.

The Municipal Labor Committee, a group that represents city workers, has sued New York City in an attempt to stop it from being able to move forward with a request for proposals to change the health insurance benefits that the employees will be receiving.

NYC will soon be seeking a new insurer for its massive benefits plan that will require premiums to be paid by workers.

In April, Deputy Mayor Caswell Holloway announced that New York City would be looking for a new provider for its huge health insurance plan that is worth an estimated $6 billion. This new plan will mean that city workers will need to pay premiums for their coverage for the first time since it was created. At the same time, it will also offer discounts to workers who take part in various forms of wellness programs.

New York Health InsuranceThe Municipal Labor Committee is now seeking a court order to stop the pursuit of these health insurance proposals.

The Municipal Labor Committee is the group that is responsible for negotiating the health insurance benefits on behalf of city workers with the officials from the municipality. It is attempting to obtain a court order that will put a halt to the city’s efforts to receive proposals from insurers for this type of plan without the consent of the group. This, according to the official complaint that has been filed in Manhattan with the New York State Supreme Court.

According to the chairperson of the Municipal Labor Committee, Harry Nespoli, in a statement, New York City is hurrying to release the request for proposals (RFP), but that this process is a “deeply flawed” one. He went on to explain that “First, the city’s unilateral action, without including the views of the city workers who receive those services in the decision-making process, goes directly against previous agreements. Second, making a $7 billion spending decision for services beginning six months after the mayor’s last day in office prevents any accountability for this important decision.”

According to Holloway, the health insurance proposal, which is required to receive union approval, would save the city approximately $400 million per year. The current contracts have already expired for all of the 300,000 people who are employed by the city and Mayor Michael Bloomberg has stated that any new deal that is established must have the workers starting to pay premiums for a part of the cost of their coverage.

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