Public Employee Press

Opposes HIP/GHI plan to go for-profit

The merger of two major health plans, GHI and HIP, and the subsequent request to New York State to convert the merged plan from nonprofit to for-profit status may have a major negative impact on our members.

Members of unions, who are the largest customers of HIP and among the largest of GHI in the state, may be in for higher premiums should this status conversion take place, and especially if the merged insurer is then “flipped” (sold) to someone else. 

On April 24 the New York Sun reported on some of the problems that could occur should conversion take place, including a provision in the recent employment agreement of HIP CEO Anthony Watson that could be worth up to $20 million if the company is converted to for-profit status. 

After seeming to support this conversion, the UFT has recently decided to take a closer look at it.  I suggest that our union do so also, and actively oppose the for-profit conversion.

—Michael Padwee
SSEU Local 371, Retired

Editor’s note: DC 37 is monitoring this situation closely to safeguard the interests of members and retirees.

The union believes that any funds generated by the for-profit conversion process should be used to protect and improve benefits for public employees, who have supported HIP and GHI for so long.