Business groups attack city's 'lavish' health benefits

[FarCenter]

Survey finds that New York could save $1.4 billion by bringing its benefits plans in line with the average used by 52 large firms here.

By Gale Scott New York City could save $1.4 billion a year if it could pare municipal government workers' health benefits down to the size of those of private-sector workers in the city, say the Citizens Budget Commission and the Partnership for New York City.

The two pro-business nonprofits surveyed 52 large firms in the city and found that municipal workers' perks are relatively extravagant. The CBC says the city now pays $10.4 billion a year for health insurance and pension premiums for, by CBC's count, 242,000 workers and 275,000 retirees. That dollar amount would be higher if it included costs at agencies like the New York City Health and Hospitals Corporation, which has about 30,000 employees, the CBC said.

A spokesman for Mayor Michael Bloomberg said the city is trying to rein in that spending, a process that must be done at the bargaining table. The city has more than 100 unions, and the benefits have built up over decades. The spokesman noted that the city recently won an agreement from the Municipal Labor Committee, which negotiates on behalf of the largest unions, to reduce the cost of health coverage by requiring workers to make co-payments, use designated hospital and ambulatory surgery networks, and other measures. Even so, it will take six years for the city to cut those costs by $1 billion. “We continue to seek an contribution of 10% of health insurance premiums, but we were not able to achieve that,” the spokesman said.

Among the CBC survey findings: While the city pays the full premiums, only 8% of private companies do; and just 29 of the 52 firms surveyed offer health coverage to retirees; of those, only two of those pay the premiums for all retirees as the city does.

<SNIP>http://www.crainsnewyork.com/article/20091217/FREE/912179991

[FiveGoodMen]

1. "Imprison your workers, give them just enough food to live, kill them if they look at your women...

It worked great before Lincoln screwed it all up..."

[niyad]

2. I'd really love to know what is "lavish" (what a word for one's health, eh?) about the city plans?

and I wonder how "lavish" are the compensation packages for the execs of those corporations--as well as those who did the study.

[onethatcares]

3. hell, I've been wondering why the Pinellas County Commissioners

are getting 100K a year and a bunch of perks. I would think the job could be done for 55K a year, it's like part time and they can pay for their own health insurance plan instead of the taxpayer doing so.

Now, if we had that strange thing called "universal healthcare" they wouldn't need those extravegant benefits.