The Bloomberg Administration’s plan to overhaul the health insurance program for more than 500,000 city employees and retirees was put on hold for a month yesterday by a Manhattan judge.
Supreme Court Justice Melvin Schweitzer extended a temporary restraining order on any actions by City Hall until Sept. 16 when he will conduct a hearing on the issues.
The Municipal Labor Committee, which negotiates health benefits on behalf of city workers, went to court to block the mayor from asking prospective health insurance companies to bid on a new $6 billion plan on the grounds that it violates state law and collective bargaining agreements.
The plan would require city workers for the first time to pay health insurance premiums which the mayor’s office estimates will save taxpayers about $400 million a year.
MLC Chairman Harry Nespoli said the unions were happy that the judge put the plan on ice for a month.
“The city’s rush to put out this RFP (request for proposal) without union input has always been a mistake and we hope they finally engage in a meaningful dialogue.”
Deputy Mayor for Operations Cas Holloway said the administration is “confident that we will prevail when we finally have the opportunity to be heard.” He said the city had addressed many of the unions’ concerns.
“Their continued obstinancy shows that they are unwilling to take any common sense measures to drastically improve service to their members and their families,” he said in a statement.
