Activists Rally Outside GHI To Protest HIP Merger

The Chief-Leader - Week of June 27, 2008
Fear Impact on Employees
Activists Rally Outside GHI To Protest HIP Merger

By ARI PAUL

Chanting "they say privatize, we say organize," a group of
rank-and-file union members and health-care activists June 20 rallied
outside Group Health Incorporated'

s Manhattan headquarters to protest
its proposed privatization and merger with the Health Insurance Plan
of Greater New York.

Looking on at center is New York City Transit Station Agent Marty Goodman.
The rally was a part of a nationwide day of protest against health
insurance companies and the for-profit health-care system. The State
Superintendent of Insurance is considering the merger and conversion
of the two firms that provide health insurance to 93 percent of city
workers, and some union activists fear that the merger will translate
into higher health-care costs and reduced coverage. Mayor Bloomberg
has opposed the merger.

Nader Sees Conflict of Interest

"It is a system that increases premiums without limit, it increases
co-payments, it increases deductions, it increases exclusions,"
presidential candidate and longtime consumer advocate Ralph Nader said
of the for-profit health insurance system during the rally. "So this
GHI-HIP merger transfers the fiduciary responsibilities of a
non-profit health insurance system to its patients to a commercial
obligation of a corporatized health insurance company to its
shareholders, which includes the top executives. There's a serious if
not illegal conflict of interest here between the heads of GHI
converting to a for-profit corporation in return for millions of
dollars to the top executives."

Activists from Transport Workers Union Local 100 and the United
Federation of Teachers voiced opposition to the merger and blasted
their union heads for not actively fighting it. Local 100 President
Roger Toussaint, who is in favor of universal health care, has
remained silent on the merger. UFT President Randi Weingarten, who
also chairs the Municipal Labor Committee, told State Superintendent
of Insurance Eric R. Dinallo in May that the MLC had concerns about a
single for-profit entity and that the coalition was prepared to oppose it.

Questions Move's Necessity

"We don't see any financial reason why the conversion needs to be
approved," said Chuck Bell, the program director of the Consumer's
Union. "HIP has over $9 million in financial reserves and as recently
as 2005, they've purchased a for-profit HMO in Connecticut for $350
million, so this is not a non-profit health plan that's short of money."

John Powers, a Teacher at Liberation High School in Brooklyn, told the
crowd that the day before the UFT Delegate Assembly passed what he
called a weak resolution in response to the merger, despite his effort
to push a resolution that would oppose it.

"It only spoke a little about the background regarding the GHI-HIP
merger," he said. "It didn't show a great concern about the fact that
once it goes public there is a need to turn a profit - that they have
to answer to the stockholders."

According to Mr. Powers, the assembly's resolution asked for a meeting
with Mr. Dinallo and guarantees against any adverse effects on city
workers.

"Our point is: 'how can you get these guarantees'" Mr. Powers said.
"We understand how corporations work."

Coalition against privatization NYC June 19 Demo Report-Back

Here is the report Billy Wharton filed with the national coordinating committee of the June 19th demos...

Friends,

We had a great rally and march in NYC yesterday. About 300 people
turned out in front of the office of GHI (a non-profit insurer in NY
State) and we then marched to the office of United Health. Speakers
included Ralph Nader, actress Vinie Burrows, Dr. Oliver Fein of the
Physicians for a National Health Program, Chuck Bell from the
Consumers Union and longtime socialist-pacifist activist David
McReynolds. Jean Fox from the Private Health Insurance Must Go!
Coalition and Billy Wharton from the Coalition Against Privatization
shared duties as the MC.

We began the event by reading aloud three healthcare horror stories
and holding a moment of silence dedicated to all the victims of
private health insurance. The GHI section of the protest was
high-energy. There is currently a proposal to "convert" GHI & HIP
into a merged for-profit company. Many speakers spoke against this
proposal and in favor of H.R. 676. Included here were rank-and-file
trade unionists including John Powers from the United Federation of
Teachers, Marvin Holland and Marty Goodman from the Transport Workers
Union Local 100 and Ronald Crenshaw from District Council 37 who,
despite their union leaders support of the conversion, found the
courage to speak up. Ralph Nader, Dr. Fein and David McReynolds gave
strong speeches demanding single-payer as both a human right and as
part of the routine services that citizens demand from the government
(fire, police and postal).

We then marched to United Health, a company which is housed in a
massive glass monstrosity on 34th street. Vinie Burrows began this
section of the march with a fine speech which highlighted the
significance of Juneteenth and the overall struggle for social
justice. Later, the Raging Grannies belted out some tunes including
lines like "Oh Medicare, my Medicare, Why don't you pay for Long Term
Care?" We closed with a fiery speech by Ajamu Sankofa of the Private
Health Insurance Must Go! Coalition and call by the MC (me!) to treat
the demonstration as a beginning point for further organizing.

Media coverage was unusual. I suppose that more people in Tokyo and
Rome will know about our demonstration than in New York City. Film
crews from Asahi news and an Italian TV station filmed and reported on
the march. Longer-term reporters from A&E and Bill Moyers Journal
also turned up. In addition, several independent media sources and
our main trade union newspaper picked up on the story.

To follow up, we distributed leaflets for a meeting on June 26th at
6:30 pm at 339 Lafayette Street (Buzzer #11) to discuss both the
GHI/HIP privatization and the struggle for HR 676. Overall, the
demonstration was quite invigorating as I felt like we were at the
beginning and not the end of something.

I have attached a photo of TWU Local 100 member Marvin Holland
delivering a speech just before we began the march from GHI to United
Health. Video and other reports are forthcoming.

Peace,
Billy Wharton

Organizer
Coalition Against Privatization

CAP Report from the May 30th Demonstration

COALITION AGAINST PRIVATIZATION (CAP)

Friends,

On Friday May 30th, the Coalition Against Privatization held its
second street demonstration against the proposed conversion
(privatization) of GHI/HIP to for-profit status. As you may have
heard, this privatization would remove an important non-profit
healthcare carrier thereby exposing 4 million people in NY State to a
for-profit health insurer. Non-profit status places a cap on
administrative spending at 15% of the overall budget, provides
oversight on premium increases and restricts access to funding from
financial markets (thereby insuring that the overall goal of the
company is the provision of healthcare and not the accumulation of
profits).

The application for conversion sailed through Albany in April of 2007
and met little resistance until January 2008. Democrats, Republicans
and, until recently, most of the leaders of municipal trade unions
supported the privatization. They hope to profit from the estimated
$3 – $5 billion dollars in assets, which will be liquidated if the
conversion is approved. Plan subscribers, including 1.2 million
municipal workers and their dependents (retirees included), would be
thrown into a for-profit system which has left more than 46 million
people without health insurance and 50 million under-insured.

In January 2008, 300 people, many retirees on fixed incomes, testified
at a hearing held by the Superintendent of Insurance. The vast
majority spoke against the proposed conversion with many demanding
single-payer national health insurance. Since then, CAP has been
formed and has organized street demonstrations on May 9th and May
30th. In addition, CAP supporters flooded the phone lines of the
Superintendent of the Insurance on May 12th in a planned call-in action.

Friday's demonstration targeted the office of GHI in midtown.
Protesters then moved to the office of Governor David Paterson. Along
the way, the march received support from passers-by in the form of
conversations, pumped fists and words of encouragement. The employees
at GHI, who face possible termination or transfer if the conversion is
approved, were also receptive to our message. Chants included: "Eric
Dinallo–Just Say No!" / "David Paterson–Tell Him No!" and "People over
Profits–Healthcare is a Right!"

Speakers included representatives from the UFT rank and file caucus,
Independent Community of Educators, TWU Local 100 rank-and-file
activists, UFT retirees, D.C. 37 retirees, Socialist Party USA,
Healthcare – NOW and Socialist Action. The speakers highlighted the
need to break through the silence on this issue by taking the word
directly to rank-and-file workers who have largely been kept in the
dark by political and trade union representatives. It was also noted
that one unelected administrator, Superintendent Eric Dinallo, now
controls the fate of 4 million people. Finally, many speakers
combined their opposition to the privatization with renewed calls for
building the movement for single-payer national health insurance.

Coverage of the march will air on a WBAI (99.5 FM) program entitled,
"Building Bridges," this Monday evening, June 2nd, at 7:00pm. There
will also be a second article by Ari Paul in this Tuesday's edition of
The Chief.

The march began with a surprise announcement that Randi Weingarten,
the head of the Municipal Labor Council and the President of the UFT,
had penned a letter to Superintendent Dinallo expressing concern about
possible increases in premium rates and denial of access to care
should the conversion be approved. She stated that the municipal
unions were in the process of reviewing their support of the proposed
conversion. This is an important victory for CAP since we have
consistently argued that premium rates and access would be jeopardized
by a for-profit carrier. Activists in ICE have also attempted to
bring this message to the floor of the UFT Delegate Assembly for the
past three months and have had many positive conversations with DA
representatives.

Going forward, CAP is participating in the June 19th national
demonstrations in support of single-payer national healthcare.
Demonstrations will be organized in 17 cities throughout the U.S. The
New York City demonstration will unite CAP with Healthcare NOW! and
Private Health Insurance Must Go! We will demand the passage of H.R.
676 and speak out against the privatization of GHI/HIP. The
demonstration will be held on Thursday, June 19th, at 5:00pm in front
of the office of GHI at 441 9th Avenue (34th & 9th). We will then
march to the office of United Healthcare at 1 Penn Plaza (33rd bet.
7th & 8th).

Please consider participating in our growing movement to stop the
privatization of GHI/HIP and secure healthcare as a basic human right!

A CAP organizer can be contacted at (718) 869-2279 or by email at
noprivatization@yahoo.com

In Peace and Solidarity,

The Coalition Against Privatization

Coalition against Privatization

Meeting
Friday April 25th 6:30pm
339 Lafayette Street Buzzer #7
(718) 869-2279 or noprivatization@yahoo.com

In December 2007 GHI & HIP filed an application with the NY State Superintendent of
Insurance to "convert" itself into a for-profit company. Conversion is a different way to
say privatization. If approved, this privatization would expose 4 million GHI/HIP policy
holders to the hazards of for-profit healthcare (premiums have increased more than 80%
in the last seven years). Included in this pool are more than 500,000 city workers (retirees
included) who will face a mega-corporation that is able to raise premiums at will, restrict
access to care, increase CEO salaries and favor the accumulation of profits over
healthcare.

To date, mainstream politicians have provided little resistance. Democrats from New York
City to Albany have lined up with Republicans. They hope to cash in on the billion-dollar
liquidation of GHI & HIP assets as part of privatization. The leaders of the city's trade
unions have also spoken in favor of the privatization thereby placing a short-term payout
ahead of the long-term interests of members.

Oddly enough, only Mayor Mike Bloomberg, normally a reliable friend of big business, has
dissented. Bloomberg's budget office calculated that 93% of the city workforce is covered
by GHI & HIP. This means that a 1% increase in premiums would cost the city $27.5
million dollars. This would, in turn, set off a struggle between city hall and the unions as
the mayor attempts to pass along the pain.

Several healthcare rights groups including NY Healthcare for All, Healthcare Now, the
Private Health Insurance Must Go! Coalition (PHIMG) and Physicians for a National Health
Program have also publicly dissented. PHIMG, the Independent Community of Educators (a
caucus of educators in the UFT) and the Socialist Party USA have passed resolutions
condemning the privatization and calling for public actions.

The potential of building a movement against privatization was displayed on January 29th
as more than 300 people flooded into a hearing organized by the Superintendent of
Insurance. The vast majority of speakers, mostly retired teachers, administrators and
transit workers, spoke against the privatization. However, little activity has taken place
since then.

It is now time to take the next step. The Coalition against Privatization will act as an
umbrella group to develop a grassroots campaign against GHI/HIP privatization.
Participation in the coalition will be based on two points:
1) No privatization of GHI/HIP
2) Healthcare is a Human Right

Time is of the essence. The chaos caused by the Spitzer resignation has given us some
time to organize. However, in one of his final acts as governor, Spitzer approved the
"conversion." Thus, the Superintendent of Insurance has final approval and the application
sits on his desk.

The first act of the Coalition was proposed at the April membership meeting of PHIMG. On
May 9th at 4:30 pm we will organize a march from the Manhattan office of the
Superintendent of Insurance to HIP headquarters. The first meeting to organize this
march, and further actions, will take place on Friday April 25th at 6:30 at 339 Lafayette
Street buzzer #7. All groups and individuals are welcome.

An organizer can be contacted at (718) 869-2279 or by email at
noprivatization@yahoo.com

Forum on Rising Cost of Health Care and Union Contracts