Forum on plans to convert nonprofit GHI/HIP healthcare to a for-profit company.

When: Thursday, September 18, at 7:30 pm

Where: 6th Street Community Center, 638 E. 6th Street  (Between Aves. B and C)

Speakers to date: Clarice Torrence, President, NY Metro Postal Union; State Senator Tom Duane; Billy Wharton, Coalition Against Privatization.

Sponsors:  Democracy for NYC, Coalition Against Privatization NYC Democratic Socials of America, NYC Young Democratic Socials, Progrssive Democrats of NY - CD14

Subways: F/V to 2nd Ave/Lower East Side; L to 1st Ave; 4/6 to Bleeker St.

Contact: kenny.schaeffer-at-gmail.com

Update:  In July, State Senator Tom Duane issued a statement in opposition to the merger, which you can read at our website, at dfnyc.org

Background:  Around four million people, including 93% of NYC employees, subscribe to GHI/HIP health plans. Since the 1940s these plans have provided quality low-cost options for working people and have served to shield New Yorkers from the worst effects of the national healthcare crisis.

In December 2007, GHI/HIP applied to the state to merge the two non-profit companies into a new public corporation called Emblem Health. The resulting IPO would provide a large cash infusion that the companies say they need to make capital improvements. HIP has health clinics, GHI does not.

As a public corporation, the combined company's primary fiduciary obligation will be to make a profit for its shareholders. This pressure will likely create higher premiums. A one percent increase in premiums would cost the city $27.5 million, presenting the prospect that the city would either need to reduce benefits or seek increased employee co-pays.

Mayor Bloomberg's was one of the few elected officials to criticize the merger and his office has sued to stop it. A request for a Temporary Restraining Order was denied so the merger process is continuing.