Public Employee Press

Bloomberg aims to cut benefits as he exits
City appeals court's health-care ruling

The Bloomberg administration has appealed the court ruling that halted its unilateral attempt to seek proposals for a new health-care contract covering city employees and retirees.

In September, Supreme Court Justice Melvin J. Schweitzer issued a temporary restraining order that blocked Mayor Michael R. Bloomberg from moving forward on a new health insurance contract, which city unions believe could fundamentally change current health benefits.

The Municipal Labor Committee, which represents city unions on health-care matters, obtained the order. The MLC charged that the administration violated a 1992 agreement by issuing its request for proposals for a new health-care contract without consulting labor. The agreement requires the city to negotiate with the unions if it wants to change the health-care package.

In October, the MLC and the city submitted arguments on the appeal to the Appellate Division court, which hasn't indicated when it will rule. Meanwhile, the temporary injunction will remain in effect; it is not clear whether the administration will be able to proceed before Bloomberg's third term ends Dec. 31.

The MLC had hoped Schweitzer's ruling would convince the city to back off its unilateral RFP process and instead sit down with the unions to discuss possible ways to reduce health-care costs, DC 37 General Counsel Robin Roach said. "Unfortunately, the city continues to insist on moving forward without consulting with the MLC about the details of the RFP," she said.

Union health-care experts who studied the 1,000-page RFP had deep concerns that it could open the door to harmful changes in members' health coverage, said Willie Chang, senior director of health planning at the DC 37 Health & Security Plan. For example, the RFP assumes that employees and retirees will contribute to health insurance premiums, and it would require members to participate in wellness programs, such as smoking cessation and exercise.

"The union has no problem working with the city to reduce health-care costs," said DC 37 Research and Negotiations Director Evelyn Seinfeld, "but by moving ahead unilaterally, the city is violating an agreement reached 20 years ago that the MLC and the city would work together to formulate an RFP."