For Immediate Release

Municipal labor efforts identify health care cost savings

Mar 26, 2009 5:50 PM

The Municipal Labor Committee announced that the city’s public sector unions have identified $200 million in health care savings in the city’s budget. The announcement, in a statement by MLC Chairperson Harry Nespoli and MLC Co-Chair Randi Weingarten, followed the city asking the MLC for health care savings in that amount.

Municipal Labor Committee Chairperson Harry Nespoli and Co-Chair Randi Weingarten released the following statement:

In the wake of the tightening budget situation, the City of New York initially asked the Municipal Labor Committee, the umbrella group representing more than 300,000 New York City employees, for $200 million of health care savings.

As of today, we have identified $200 million in health care savings in the city’s budget. Half of that amount is recurring, while the other half is a one-time cash payout which achieves the health savings target the City requested of the municipal unions.

Labor has always worked responsibly with the city in times of crisis, and we will continue to work together to flesh out cost-effective savings and explore ways to generate revenue in the months ahead.

Weingarten added: “The Municipal Labor Committee rejected premiums on the base plan and a Tier V, but found savings without diminishing benefits.”