BUDGET RELATED INSURANCE PROPOSALS TARGET UNIONS

Even as the Obama administration searches for ways to provide health care for all, the Paterson administration is pushing avenues that make health insurance even less affordable for New York workers, their unions and employers.

The recently passed deficiency budget levied an increase in the covered lives assessment on health insurance. The assessments range varies throughout three geographic ranges in New York State. New York City, with a 27.28% assessment has the highest percentage. Rochester has an 18.62% increase and Long Island has a 19.39% increase. Other geographic regions were also levied increases, but with a lower percentage.

Now there is a proposal in the Governor’s budget for a transaction tax on third party administrators (TPA) of self-insured plans. The fee will be invoked whenever a TPA handles a claim of $20 or more and will be set a $1 per each claim. This program will cover traditional health coverage, pharmaceutical claims, dental coverage and vision programs. It is projected that this tax will raise $62 million dollars in 2009 and $120 million in 2010.

These two actions will punish employees and employers with health care and further reward employers who do not provide coverage. We urge all of our affiliates to strongly oppose this budget proposal which places a tax on each activity of a TPA in administering our health plans.

We will soon follow-up with specific proposals and statistics to address these issues.

Denis M. Hughes

LABOR LOYBBISTS MEETING
Monday, March 2, 2009
100 South Swan Street, Albany
1:00 p.m.

Lunch will be served

Guest: Senator Diane Savino, Chair of the Civil Service and Pensions Committee

Issue of the Week

NOTICE OF PUBLIC HEARING ON INDUSTRIAL DEVELOPMENT AGENCIES (IDAs)

The New York State Assembly Standing Committee on Local Governments is holding a public hearing to solicit input on the role of Industrial Development Agencies in New York State:

Wednesday, March 4, 2009
11:00 a.m.
Hearing Room C
Legislative Office Building
Albany, New York

Keep An Eye On

Tuesday, March 3, 2009
2:00 p.m. Nurses Issues Committee Meeting, 100 South Swan Street, Albany, New York.

Thursday, March 5, 2009
4:00 p.m. ”Rally for New York!”
Devastating budget cuts still threaten our communities, our jobs, our neighbors and our families. Speak out for Fair Solutions! There is a Better Way! A coalition of labor unions and community groups will hold a massive rally at City Hall in Manhattan.

For further information contact Legislative Department at:518-436-8516 or edonnelly@nysaflcio.org


Denis Hughes, President	Ed Donnelly, Director
March 2, 2009	Issue Six