Testimony on rising health care costs

Testimony of Michael Mulgrew, UFT president, submitted to the United States House Committee on Ways and Means

As the president of the United Federation of Teachers (UFT), I would like to thank Chairman Jason Smith, Ranking Member Richard Neal and all the members of the House Committee on Ways and Means for holding a hearing on the impact of rising health care costs on patients and families. The UFT represents 210,000 employees in New York City, including teachers, paraprofessionals, school secretaries, attendance teachers, guidance counselors, psychologists, social workers, adult education teachers, administrative law judges, nurses, speech therapists, laboratory technicians and 70,000 retired members. Preserving access to high-quality, affordable health care for these members and their families is of the utmost importance to our union.

Currently, health care costs are skyrocketing across the United States. We are acutely aware of this in New York City, which is home to some of the best hospitals and medical facilities — but also to some of the highest health care costs — in the country. Large hospital networks are drivers of price increases as they continue to put profits before patients without regard to how their actions hurt working people. NewYork-Presbyterian continues to threaten to throw 40,000 municipal employees, retirees and their families out of network if the city doesn’t agree to pay its astronomical prices. 

Recently published public pricing data exposed just how much Presbyterian was charging compared to other hospital systems in New York City. On average, the hospital giant has been charging 77 percent more for medical services than other New York City hospital systems, and their rates have been nearly 500% above the approved Medicare rate. Presbyterian has also been charging twice as much for services like C-sections and colonoscopies as other hospitals in NYC and 74% more for asthma and bronchitis treatments. 

I wish that I could say Presbyterian were an outlier, but it is not alone in this practice. Countless other hospitals continue to make money on the backs of workers. This is simply unacceptable.

I am grateful to the Justice Department’s Antitrust Division and the U.S. Attorney’s Office for the Southern District of New York for recently filing a lawsuit against NewYork-Presbyterian, charging the institution with stifling competition to protect its high prices and preventing New Yorkers from being able to select more affordable health care. Holding health systems accountable for their part in the health care affordability crisis is critical in the fight to ensure that health care remains accessible and affordable for everyone.

I thank you again for holding this hearing and for the opportunity to submit testimony.