***For Immediate Release*** NY State Department of Insurance Rejects Emblem Health Claim; Releases Documents to Activists Wednesday April 29, 2009 -
On Tuesday April 28, 2009 Michelle Birnbaum, Legal Assistant to the General Counsel of NY State, notified activist Billy Wharton that the NY State Department of Insurance (DOI) would comply with his Freedom of Information Act (FOIA) request. Wharton requested that all documents related to the proposed conversion of Emblem Health (formerly GHI & HIP) to a for-profit corporation be made public.
Emblem Health attempted to counter this by claiming that their latest for-profit conversion application should be exempt from Freedom of Information Act laws. Emblem argued that their amended application contained trade secrets and proprietary information. The DOI rejected this claim and has transmitted the revised “draft” application to Mr. Wharton along with a full list of documents relating to the attempted for-profit conversion. “The release of these documents,” said Wharton,”should increase public debate over a health care privatization which could negatively impact more than 3 million New Yorkers.” There has been strong outcry from public health advocates about the proposed conversion since the application was filed by Emblem with the DOI in December 2007. Despite this, no impact analysis of the conversion has been conducted and only two public hearings have been organized by the DOI.
Emblem claims that the conversion would provide it with the private capital needed to upgrade administration and increase their competitive advantage. Activists see the for-profit conversation as a privatization attempt which would lead to higher premiums, denial of access to care and the possible elimination of coverage for less–profitable Medicaid recipients. New York City Mayor Michael Bloomberg also objected to the merger and conversion of the companies by citing violations of anti-trust laws. Faced with widespread opposition from all sectors of the health care rights community, Emblem withdrew its application for conversion in early 2008. A new “draft” proposal was filed the DOI on July 24, 2008. Since Emblem did not formally file an application, the document seemed to be exempt from Freedom of Information Laws. Activists expect the “draft” application to contain Emblem’s attempt to respond to public criticisms of the proposed conversion. Emblem has yet to file another official application with the DOI.
TWU Local 100 president Roger Toussaint who sits on GHI Corporate Board of Directors yet still remains silent on the subject of the merger and, the conversion of transit workers health care benefits. Mr. Toussaint has been silent on the privatization of our health care just as the slate he endorses has been invisible on fighting for our health care to stay non profit.Take Back Our Union (TBOU) will continue to work with other activists and organizations to fight back these attacks on our health care benefits . Take Back Our Union(TBOU)looks to focus on real issues that impact the lives of Transit Workers and not politics .For more information visit www.tbou.org.
Showing posts with label HIP-GHI Merger. Show all posts
Showing posts with label HIP-GHI Merger. Show all posts
Friday, July 18
Update on GHI/HIP merger and conversion
The latest person to show serious concern about the GHI/HIP conversion is senator Tom Duane here is his letter :
Dear Superintendent Dinallo:
With the 2008 Legislative Session behind us, I understand the New York State Insurance Department will be continuing its consideration of the proposed conversion of GHI/HIP to the for-profit entity EmblemHealth, Inc. I am deeply concerned about the impact this conversion would have on many of my constituents and GHI/HIP members throughout New York State.
As you know, NY Insurance Law §7317(b) prohibits such a change in the status of not-for-profit health insurance entities to a for-profit company if the move would "adversely affect the applicant's contractholders or members," or "negatively impact on the delivery of health care benefits and services to the people of the state of New York." I believe that this conversion will both negatively impact the provision of health care services to the people of New York, and, more specifically, will adversely affect those individuals who are currently enrolled in GHI and HIP's health plans.
All other states considering such conversions within the past five years &ndash Kansas, Washington, North Carolina, and Maryland &ndash have rejected these plans. As with all other for-profit corporations, the foundational legal obligation of EmblemHealth will be to maximize profits for its shareholders. The pursuit of profit will therefore be the company's premiere priority, surpassing the provision of quality health care services to its members as the company's primary goal. This will inevitably lead to higher prices for health care consumers and the cutting of corners with respect to the quality of health care services. If EmblemHealth raises its rates, its competitors are likely to do so as well, and all New Yorkers will suffer. A number of studies have shown that for-profit health insurance companies provide poorer quality health services and have lower rates of customer satisfaction than not-for-profit health care providers.
Currently, both GHI and HIP are financially viable and provide quality health care services to New Yorkers. There is absolutely no reason to permit a conversion to not-for-profit status, particularly when for-profit health care providers have been proven to be worse for New Yorkers than not-for-profits. Comprehensive, quality, healthcare for all New Yorkers must be the primary goal of health care providers &ndash not the acquisition of profit. For all these reasons, I strongly oppose the conversion of GHI and HIP to the for-profit EmblemHealth.
Thank you very much for your consideration of my position on this important matter.
Sincerely, Thomas K. DuaneNew York State Senate29th District
Dear Superintendent Dinallo:
With the 2008 Legislative Session behind us, I understand the New York State Insurance Department will be continuing its consideration of the proposed conversion of GHI/HIP to the for-profit entity EmblemHealth, Inc. I am deeply concerned about the impact this conversion would have on many of my constituents and GHI/HIP members throughout New York State.
As you know, NY Insurance Law §7317(b) prohibits such a change in the status of not-for-profit health insurance entities to a for-profit company if the move would "adversely affect the applicant's contractholders or members," or "negatively impact on the delivery of health care benefits and services to the people of the state of New York." I believe that this conversion will both negatively impact the provision of health care services to the people of New York, and, more specifically, will adversely affect those individuals who are currently enrolled in GHI and HIP's health plans.
All other states considering such conversions within the past five years &ndash Kansas, Washington, North Carolina, and Maryland &ndash have rejected these plans. As with all other for-profit corporations, the foundational legal obligation of EmblemHealth will be to maximize profits for its shareholders. The pursuit of profit will therefore be the company's premiere priority, surpassing the provision of quality health care services to its members as the company's primary goal. This will inevitably lead to higher prices for health care consumers and the cutting of corners with respect to the quality of health care services. If EmblemHealth raises its rates, its competitors are likely to do so as well, and all New Yorkers will suffer. A number of studies have shown that for-profit health insurance companies provide poorer quality health services and have lower rates of customer satisfaction than not-for-profit health care providers.
Currently, both GHI and HIP are financially viable and provide quality health care services to New Yorkers. There is absolutely no reason to permit a conversion to not-for-profit status, particularly when for-profit health care providers have been proven to be worse for New Yorkers than not-for-profits. Comprehensive, quality, healthcare for all New Yorkers must be the primary goal of health care providers &ndash not the acquisition of profit. For all these reasons, I strongly oppose the conversion of GHI and HIP to the for-profit EmblemHealth.
Thank you very much for your consideration of my position on this important matter.
Sincerely,
Thomas K. DuaneNew York State Senate29th District
Dear Superintendent Dinallo:
With the 2008 Legislative Session behind us, I understand the New York State Insurance Department will be continuing its consideration of the proposed conversion of GHI/HIP to the for-profit entity EmblemHealth, Inc. I am deeply concerned about the impact this conversion would have on many of my constituents and GHI/HIP members throughout New York State.
As you know, NY Insurance Law §7317(b) prohibits such a change in the status of not-for-profit health insurance entities to a for-profit company if the move would "adversely affect the applicant's contractholders or members," or "negatively impact on the delivery of health care benefits and services to the people of the state of New York." I believe that this conversion will both negatively impact the provision of health care services to the people of New York, and, more specifically, will adversely affect those individuals who are currently enrolled in GHI and HIP's health plans.
All other states considering such conversions within the past five years &ndash Kansas, Washington, North Carolina, and Maryland &ndash have rejected these plans. As with all other for-profit corporations, the foundational legal obligation of EmblemHealth will be to maximize profits for its shareholders. The pursuit of profit will therefore be the company's premiere priority, surpassing the provision of quality health care services to its members as the company's primary goal. This will inevitably lead to higher prices for health care consumers and the cutting of corners with respect to the quality of health care services. If EmblemHealth raises its rates, its competitors are likely to do so as well, and all New Yorkers will suffer. A number of studies have shown that for-profit health insurance companies provide poorer quality health services and have lower rates of customer satisfaction than not-for-profit health care providers.
Currently, both GHI and HIP are financially viable and provide quality health care services to New Yorkers. There is absolutely no reason to permit a conversion to not-for-profit status, particularly when for-profit health care providers have been proven to be worse for New Yorkers than not-for-profits. Comprehensive, quality, healthcare for all New Yorkers must be the primary goal of health care providers &ndash not the acquisition of profit. For all these reasons, I strongly oppose the conversion of GHI and HIP to the for-profit EmblemHealth.
Thank you very much for your consideration of my position on this important matter.
Sincerely, Thomas K. DuaneNew York State Senate29th District
Dear Superintendent Dinallo:
With the 2008 Legislative Session behind us, I understand the New York State Insurance Department will be continuing its consideration of the proposed conversion of GHI/HIP to the for-profit entity EmblemHealth, Inc. I am deeply concerned about the impact this conversion would have on many of my constituents and GHI/HIP members throughout New York State.
As you know, NY Insurance Law §7317(b) prohibits such a change in the status of not-for-profit health insurance entities to a for-profit company if the move would "adversely affect the applicant's contractholders or members," or "negatively impact on the delivery of health care benefits and services to the people of the state of New York." I believe that this conversion will both negatively impact the provision of health care services to the people of New York, and, more specifically, will adversely affect those individuals who are currently enrolled in GHI and HIP's health plans.
All other states considering such conversions within the past five years &ndash Kansas, Washington, North Carolina, and Maryland &ndash have rejected these plans. As with all other for-profit corporations, the foundational legal obligation of EmblemHealth will be to maximize profits for its shareholders. The pursuit of profit will therefore be the company's premiere priority, surpassing the provision of quality health care services to its members as the company's primary goal. This will inevitably lead to higher prices for health care consumers and the cutting of corners with respect to the quality of health care services. If EmblemHealth raises its rates, its competitors are likely to do so as well, and all New Yorkers will suffer. A number of studies have shown that for-profit health insurance companies provide poorer quality health services and have lower rates of customer satisfaction than not-for-profit health care providers.
Currently, both GHI and HIP are financially viable and provide quality health care services to New Yorkers. There is absolutely no reason to permit a conversion to not-for-profit status, particularly when for-profit health care providers have been proven to be worse for New Yorkers than not-for-profits. Comprehensive, quality, healthcare for all New Yorkers must be the primary goal of health care providers &ndash not the acquisition of profit. For all these reasons, I strongly oppose the conversion of GHI and HIP to the for-profit EmblemHealth.
Thank you very much for your consideration of my position on this important matter.
Sincerely,
Thomas K. DuaneNew York State Senate29th District
Saturday, May 10
Tuesday, January 29
HIP-GHI Conversion Nearly Complete
On Tuesday, January 29th at the HIP headquarters in Lower Manhattan, so many people showed up for a public hearing that by 10:00 am the hearings were temporarily closed to the public. Those who wanted to enter the only public hearing being held in NYC had to wait up to six hours to testify. The majority were against the merger and conversion that would turn GHI and HIP from two separate non-profit entities into one for-profit company, EmblemHealth.
The President of the Medical Society of the State of New York, Dr. Robert Goldberg, who also testified at the hearings believes the conversion of the GHI-HIP insurance company would have a negative impact on patient care and payments to physicians.
This new company will be the largest single health plan in the state, with over four million members and $7 billion in revenue and would dominate the New York metropolitan area. In particular the municipal unions, as over 90% of their members will now be subscribers in this new company. The original merger began in 2005, but was blocked by the mayor until 2006. In November 2006, they were approved by state regulators to operate as affiliates under a governing foundation. While the union is known as EmblemHealth, the companies continue to function under their own names.
At the hearing it became clear that no one knows what the future holds for this new company. In particular, the billions of dollars that will be made when it becomes a private company. One group, New York City union leaders, want their members to become part of any profit sharing model. As Randi Weingarten, President of the UFT put it " .. We want our members, the dedicated city workers who are the real stakeholders who have contributed to the value of HIP/GHI for decades, to get a fair share of the proceeds should the HIP/GHI conversion to a for-profit move forward."
In the past, large company mergers have led to layoffs of long-term workers. To date, at least 160 union workers from HIP have lost their jobs due to this conversion. In addition, non-profits that convert to for-profit health organizations traditionally raise the prices for the cost of care. This is the reason most experts in the medical field believe single payer health care is the better way to go.
A second public hearing is scheduled for Jan. 31 in Albany.
M.H.
. . . . . . . . . . . . .
The President of the Medical Society of the State of New York, Dr. Robert Goldberg, who also testified at the hearings believes the conversion of the GHI-HIP insurance company would have a negative impact on patient care and payments to physicians.
This new company will be the largest single health plan in the state, with over four million members and $7 billion in revenue and would dominate the New York metropolitan area. In particular the municipal unions, as over 90% of their members will now be subscribers in this new company. The original merger began in 2005, but was blocked by the mayor until 2006. In November 2006, they were approved by state regulators to operate as affiliates under a governing foundation. While the union is known as EmblemHealth, the companies continue to function under their own names.
At the hearing it became clear that no one knows what the future holds for this new company. In particular, the billions of dollars that will be made when it becomes a private company. One group, New York City union leaders, want their members to become part of any profit sharing model. As Randi Weingarten, President of the UFT put it " .. We want our members, the dedicated city workers who are the real stakeholders who have contributed to the value of HIP/GHI for decades, to get a fair share of the proceeds should the HIP/GHI conversion to a for-profit move forward."
In the past, large company mergers have led to layoffs of long-term workers. To date, at least 160 union workers from HIP have lost their jobs due to this conversion. In addition, non-profits that convert to for-profit health organizations traditionally raise the prices for the cost of care. This is the reason most experts in the medical field believe single payer health care is the better way to go.
A second public hearing is scheduled for Jan. 31 in Albany.
M.H.
. . . . . . . . . . . . .
Subscribe to:
Posts (Atom)
