UPDATE 7/21/08: NY State Senator Tom Duane (D - Hell's Kitchen, Chelsea) has issued a statement in opposition to the merger with a good explanation of why the merger would probably be a bad thing for New Yorkers.

Around four million people, including 93% of NYC employees, subscribe to GHI or 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 and 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.

Write Superintendent Dinallo and tell him to oppose this merger:

Honorable Eric R. Dinallo
New York State Superintendent of Insurance, One Commerce Plaza
Albany, NY, 12257

In addition, you should contact your state representatives and either encourage them to oppose the proposal or at least ask what their position is on a for-profit GHI/HIP.

For more information visit the The Coalition Against Privatization