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FOR IMMEDIATE RELEASE
PR- 363-03
December 18, 2003

THE BLOOMBERG ADMINISTRATION AND THE MUNICIPAL LABOR COMMITTEE ANNOUNCE HEALTH BENEFITS AGREEMENT

The Bloomberg Administration and the Municipal Labor Committee (MLC) announced an agreement modifying the New York City Health Benefits Program that covers over 500,000 current employees and retirees.  The agreement will generate $100 million in savings per year starting April 1, 2004 and provide valuable health benefits to City employees without additional cost to New York’s taxpayers.   Rising drug costs forced the City and Municipal Unions to find new ways to finance the benefits program. The agreement also includes a $100 self-funded increase in welfare fund contributions for all active employees and retirees.

“The MLC helped avert dramatic reductions to the City’s Health Benefit Program,” said Mayor Bloomberg.  “Without the spirit of compromise and a commitment to negotiate, tens of thousands of City workers, retirees and their families would have lost an important health benefit.  This agreement demonstrates that we can protect our municipal employees benefits without spending resources that we simply don’t have.  I want to thank the MLC for its leadership and dedication to its members.”

Today’s agreement maintains the Mayor’s plan to pay for additional benefits through productivity. The agreement reached with the Municipal Labor Committee requires no commitment of City funds and the benefits will be funded solely from the Health Insurance Stabilization Fund.

In January 2001, a health benefits agreement was negotiated between the MLC and the City establishing a prescription drug plan for municipal employees and retirees that saved the City 
$360 million in FY 2003 and FY 2004. The 2001 agreement produced the PICA PROGRAM, a prescription program for psychotropics, injectables, chemotherapy and asthma drugs.
 
Today’s agreement will maintain the PICA program with the following modifications: 

• A three-tier co-payment schedule will be established;
• A mandatory mail order program will be instituted, as well as other cost containment measures.

As a result of this agreement the following additional changes will be made to the City’s Health Benefits Program:

• Effective April 1, 2004, the GHI/Blue Cross CBP benefits will be modified to include an increase in co-pay for office visits and other diagnostic tests – as well as an increase in deductibles for certain health related costs including physician care and in-patient hospitalization.
• An annual administrative fee in the amount of $35 will be charged to all employees and retirees enrolled in the New York City Health Benefits Program.

“I want to thank Deputy Mayor Marc Shaw, Randi Weingarten and her negotiating staff, Labor Commissioner James F. Hanley, First Deputy Commissioner Pamela Silverblatt and their team, and Mark Page, Director of the Office of Management and Budget, and his staff for all of their efforts in reaching this Agreement,” concluded Mayor Bloomberg.







MEDIA CONTACT:


Ed Skyler / Jordan Barowitz   (212) 788-2958




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