State refuses to save on health insurance


By MARTY O’CONNOR In last month’s Communicator


we showed a map of the United States that highlighted the attacks on public-sector workers. This is not a random occurrence or some strange confluence of events. This is a strategic attack on public-sector workers. It is amazing how the wealthiest 1 percent can dictate the terms of debate. Let’s take a look at health insurance. Political “leaders” in this country, with


the full support of the wealthiest 1 percent, scream at the top of their lungs that public-employee benefits are too rich and are causing property and income taxes to skyrocket. Does that sound familiar? The workers are the problem and the debate is how much to cut their benefits or how much more they should pay for them. Here is the side that doesn’t get told:


The largest health insurers realized a 250 percent return over the past decade and reportedly earned more than $15 billion in 2010. That was a 22 percent increase over 2009 earnings. On top of that, the major health insurers are heading into a third year of record profits.


They are realizing these profits because Americans are postponing or giving up on medical care and procedures. Workers are making these decisions because of the economy and, no doubt, the increased co-pays associated with medical care


these days. Here’s the kicker: The


insurance companies continue to seek higher


premiums, even though their


reserves are flush and shareholders are getting new dividends. The companies claim to need these increased premiums because they are concerned that eventually people are going to get some of the medical care and procedures if they ever start making enough money. So, they need higher premiums because people might actually use the insurance. This reasoning is acceptable to our


political leaders. It makes perfect sense to them. Insurance companies are making record profits because workers can’t afford to use the insurance and the companies need increased premiums so they can continue to make record profits when the workers can afford to use the insurance.


For PEF members it gets even more


bizarre. New York taxes “for-profit” insurance companies, such as those insuring the Empire Plan, on the premiums they charge. This means every member and retiree enrolled in the Empire Plan is paying a tax to the state of New York on their premiums because, as we all know, companies just pass along any tax to the consumer. PEF proposes New York self-insure for


health benefits. The state has estimated this would save the health insurance plan several hundred million dollars per- year, a savings that would be reflected in the premiums paid by the enrollees and their employers. The state’s response to PEF’s


proposal? No. Why, you ask, would the state turn up


its nose to several hundred million a year in savings? Because the state would lose the revenue from the taxes you pay on your health insurance premiums if it self-insured the Empire Plan. Think about it: The state of New York


has decided it would rather collect taxes from public servants than millionaires. So, it will continue to overpay for health insurance. It still gets to beat us up over the cost of our benefits, and the insurance companies continue to make profits! It’s a win-win! You can’t make this stuff up.


Get it in writing before you accept that promotion It’s flattering to be


offered a promotion when you haven’t even completed probation for the job you’re in. Flattering, but risky. You have significantly less


job security when you are not permanently appointed in a job title. At a time of significant work force


turmoil, you may need to retreat to an earlier permanent item, but you won’t have a hold on it if you did not complete probation. According to PEF Director of Civil


Service Enforcement Tom Cetrino, “It’s becoming more common for agency managers to refuse to recognize time served in a higher level title toward


Page 14—The Communicator July-August 2011


satisfying probation at a lower level title, and to use such situations to terminate employees whom they consider to


still be on probation. “We recommend all


employees, who have not completed probation in their title and


are offered a higher level position, request in writing that their service in the higher position be counted toward satisfactory completion of probation in their current job title. They should get that answer in writing before they formally accept the promotion,” Cetrino said. Institutional employees are


particularly likely to encounter these situations. Cetrino said, “The promotions


might be for permanent, temporary or provisional positions.” He said state Civil Service rules and


regulations give agency management the “discretion” to allow the time served in the higher position to count toward satisfactory completion of probation in the lower title. Civil Service policy requires the agency to inform the employee of its decision in writing upon the employee’s appointment to the higher position. Cetrino cautioned, however, “There’s a


discrepancy between the rule and policy as to whether the employee must first request an agency decision on this matter before it must be provided in writing.” —Sherry Halbrook


PEF Information Line: 1-800-553-2445


TRUTH BE TOLD – EDITORIAL


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