MEA Letter, Administrative Code Section 12-126

The New York City Managerial Employees Association (MEA) objects to the proposed change to the Administrative Code, Section 12-126. Letters were sent to all City Council members, all Borough Presidents, OLR Commissioner, NYC Comptroller, NYC Public Advocate, and MLC representatives.

Letter is below.

Speaker Adrienne Adams
New York City Council
165-90 Baisley Blvd
Jamaica, NY 11434

RE: Do Not Amend NYC Administrative Code Section 12-126

Dear Speaker Adams,

The New York City Managerial Employees Association (MEA) objects to the proposed change to the Administrative Code, Section 12-126 enabling the City to make Medicare Advantage the only premium free retiree plan. The current Medicare / Senior Care plan will then cost at least $191 a month per person. Changing Section 12-126 of the Administrative Code will seriously undermine and compromise the healthcare protections for all City workers. It will allow the City to renegotiate the rate for everyone and place employees into different “classes” with reduced benefits eliminating the protections and equal treatment regarding health benefits that current and retired employees have now.

We strongly oppose the Administration’s planned reductions in health coverage through the privatization of Medicare for retirees as the City seeks to weaken the protections guaranteed for all City workers in the Administrative Code.  The City has alternatives for managing rising health care costs instead of amending the Administrative Code.  The Administration could use its purchasing power to challenge hospitals for exorbitant charges, address the skyrocketing costs of prescription drugs, and audit current insurance providers.  The burden should not fall on current workers, retirees, and their dependents.

Additionally, based on the enclosed June 28, 2018 Letter of Agreement and the Fiscal Year End 2019 Healthcare Savings Report from the Office of Labor Relations, MEA advises that the City Council Civil Service and Labor Committee and Finance Committee require the Mayor’s Office of Management and Budget (OMB) provide the following before hearings on amending Section 12-126 of the Administrative Code:

  1. Reports indicating the cumulative healthcare cost savings for Fiscal Years 2019, 2020 and 2021 compared to the projected cost savings enumerated in Section 1. a. i., ii., and iii.
  2. Reports indicating the actual costs versus the projected costs in Section 1. b.c., and d.
  3. Reports indicating any savings enumerated in Section 2. a. and b.
  4. Copies of all reports enumerated in Section 3
  5. Projected cost savings for all options enumerated in Section 5.
  6. How much money has the City spent on GHI Senior Care and the other retiree Medicare plans in Fiscal Years 2019, 2020 and 2021 compared to the projected $600M per year.
  7. How much money has the City saved by providing all new hires with HIP as the only option. What percentage of those new employees changed coverage to another plan after the one year waiting period?
  8. What are the additional savings accruing based on this factor?
  9. How much money has the City saved over the past three years based on the 24,000 reduction in headcount?
  10. How much money is the City projected to save in the out years based on this headcount reduction and what are the future Programs to Eliminate the Gap (PEG)?

MEA believes it is critical that the committee chairs require OMB to submit these reports before scheduling the hearings so that the committees can ask informed questions and follow-up with policy / legislative proposals.

Respectfully submitted,
Darrell L. Sims

cc: Alice Wong, Executive Director
Stuart Salles, Esq.