Beginning July 1, thousands of members will feel the sting of sharply
rising health coverage costs.
Steep increases in premium copayments will hit members and non-Medicare
eligible retirees in nine out of the 12 health care plans offered
by the city. The hikes do not affect subscribers in the GHI, HIP and
DC 37 Med Team/Choice plans, which do not charge premium copays for
their basic plans.
The DC 37 Health and Security Plan will assist members and retirees
who experience financial hardships to switch their coverage, said
the plan's new administrator, Rosaria R. Esperon.
Ordinarily, the city lets subscribers change plans only during a period
in the fall. But this year, the Municipal Labor Committee, an umbrella
group of unions representing 300,000 public workers, convinced the
city to make an exception because of the magnitude of the rate hikes.
"We are very concerned that our members don't remain stuck in
a plan with a rate increase that wreaks havoc on their family budget,"
Ms. Esperon said. "We expressed that concern to the city, and
it agreed to be flexible about letting people change plans."
Health care cost inflation, again topping 10 percent a year, caused
the premium increases. Health insurers are asking an increase of over
20 percent next year.
"After several years of fairly reasonable increases, we are seeing
the beginning of a cycle of double-digit increases," said Associate
Administrator Abe Steinberg. "Unfortunately, we don't see this
situation getting better anytime soon."
Rates are going up by as much as 300 percent.
Cigna Healthcare is increasing its premium copays from an average
monthly payment of $4.23 for individuals and $52 for families in fiscal
year 2002 to $17.65 and $91 in fiscal year 2003, which begins July
1. Aetna HMO is boosting its monthly copayments from an average of
$28.26 for individuals and $77.54 for families in 2002 to $46.60 and
$123.86.
Under an agreement between the city and the municipal unions, city
funding for all plans is set by the state-approved HIP/HMO rate, which
is the amount that the Health Insurance Plan of Greater New York charges
for each enrolled individual. Participants in health-care plans whose
basic premium is greater than the HIP/HMO rate have to make up the
difference through payroll and pension deductions of their premium
copayments.
Members and retirees in the plans that will raise rates will feel
the impact of medical inflation even more intensely this year because
they were paying artificially low premiums in April, May and June
to compensate for excessive copayments they had made over the previous
nine months.
— Gregory N.
Heires