Saturday, October 30, 2010
News From The E-Board (TWU Local 100)
Solidarity Fund -- As of 10/18, there are 854 members still laid off. 300 have applied for coverage of health insurance through the Solidarity Fund. More are applying every day. A full report will be given at the 11/6 membership meeting. Local 100 retirees have donated about $60,000 to the fund. Change in insurance provider – Rec-Sec Benita Johnson is heading up the Local’s task force to ensure that members are not harmed by the MTA’s decision to change to Empire Blue Cross/Blue Shield and United Healthcare. Questions about the changes should be directed to her office at the union hall (212-873-6000). The TA is hiring Bus Operators for Brooklyn off the street while operators in MaBSTOA are still laid off. The union filed a grievance challenging this under the language of the bus consolidation agreement. The TA went to court and got an injunction against the grievance, but at a hearing on Wed. the judge ruled that the grievance can go forward.A judiciary panel was appointed, as required by the by-laws. This panel will provide the members for trial committees to hear charges. The chair of the panel is VP Tony Utano. The vice-chair is OA Div 1 Chair Richard Davis. The other members (one from each division) are Christine Williams (Stations), John Spicer (Private Lines), Tom Lenane (MaBSTOA), Richie Holley (MoW), Neil Phillips (CED), Dennis Boyd (RTO), LaTonya Crisp-Saury (TA Surface).New Building – the Local has signed a contract to purchase the property at 350 Schermerhorn in downtown B’klyn. The property holds two buildings and a parking lot. It requires a lot of renovation (including asbestos removal) so it will be more than a year after the closing before we will be able to move in. In the meantime, the Local will sublet the office space at 1700 Broadway that the national union had occupied before its move to Washington, DC. The Local will be moving in Dec.Financial reports for June, July, and August were presented by our accountant and accepted by the Board.Governor’s Race – by a vote of 35 in favor, 3 opposed and 0 abstentions, the Board voted not to make any endorsement for governor. In the discussion, no one expressed support for either Cuomo or Paladino because of their statements blaming public sector workers and unions for the state’s financial crisis and their clear intentions to go after our benefits and pensions. Several members urged the Board to endorse a minor party candidate (both Howie Hawkins of the Green Party and Charles Barron of the Freedom Party had support on the Board) to help alternative parties achieve ballot status for the next four years. (The three members who voted “no” wanted the Board to make an endorsement, but of a minor party candidate). Local 100 joins DC 37, the UFT and NYSUT (the statewide teachers’ union) in making no endorsement for governor.
Tuesday, October 19, 2010
U.S. Sues Blue Cross Over Pricing By Robert Pear October 19, 2010 New York Times
The Justice Department sued Blue Cross Blue Shield of Michgan on Monday, asserting that the company, the state's dominate health insurer, had violated antitrust lawsand secured a huge competitive advantage by forcing hospitals to charge higher prices to Blue Cross's rivals.
The civil case appears to have broad implications because many local insurance markets, like those in Michigan, are highly concentrated, and Blue Cross and Blue Shield plans often have the largest shares of those markets.
In the Michigan case, the Obama administration said that Blue Cross Blue Shield had contracts with many hospitals that stifled competition, resulting in higher health insurance premiums for consumers and employers.
The state of Michigan was also plaintiff in the lawsuit filed in the Federal District Court in Detroit.
Blue Cross and Blue Shield, like most insurers, contracts with hospitals, doctors, labs and other providers for services. The lawsuit took direct aim at clauses stipulating that no insurance companies could obtain better rates from the providers than Blue Cross. Some of these contract provisions, known as "most favored nation" clauses, require hospitals to charge other insurers a specified percentage more than they charge Blue Cross - in some cases, 30 to 40 percent more, the lawsuit said.
Christine A. Varney, the assistant attorney general in charge of the antitrust division of the Justice Department, said these requirements were "pernicious."
"Our lawsuit alleges that the intent and effect of Blue Cross Blue Shield of Michigan's contracts is to raise hospital costs for competing health plans and reduce competition for the sale of health insurance," Ms. Varney said. "As a result, consumers in Michigan are paying more for their health care services and health insurances."
The Contract terms, she said, discouraged discounts and prevented other insurers from entering the market.
The lawsuit also asserts that blue Cross, in effect, bought protection from competition- by agreeing to pay higher prices to certain hospitals to induce them to agree to the "most favored nation" clauses.
Blue Cross Blue Shield of Michigan said the lawsuit had no merit. It said the contract clauses attacked by the Justice Department were a tool to secure the lowest possible hospital costs, and the deepest possible discounts, for more than four million people it served.
"It does not make good business sense for Blue Cross Blue Shield of Michigan to reimburse a provider at a higher rate than we can otherwise negotiate," said R. Andrew Hetzel, a spokesman for the company. "These kinds of low-cost guarentees are widely used in a variety of contracts in a number of industries."
The civil case appears to have broad implications because many local insurance markets, like those in Michigan, are highly concentrated, and Blue Cross and Blue Shield plans often have the largest shares of those markets.
In the Michigan case, the Obama administration said that Blue Cross Blue Shield had contracts with many hospitals that stifled competition, resulting in higher health insurance premiums for consumers and employers.
The state of Michigan was also plaintiff in the lawsuit filed in the Federal District Court in Detroit.
Blue Cross and Blue Shield, like most insurers, contracts with hospitals, doctors, labs and other providers for services. The lawsuit took direct aim at clauses stipulating that no insurance companies could obtain better rates from the providers than Blue Cross. Some of these contract provisions, known as "most favored nation" clauses, require hospitals to charge other insurers a specified percentage more than they charge Blue Cross - in some cases, 30 to 40 percent more, the lawsuit said.
Christine A. Varney, the assistant attorney general in charge of the antitrust division of the Justice Department, said these requirements were "pernicious."
"Our lawsuit alleges that the intent and effect of Blue Cross Blue Shield of Michigan's contracts is to raise hospital costs for competing health plans and reduce competition for the sale of health insurance," Ms. Varney said. "As a result, consumers in Michigan are paying more for their health care services and health insurances."
The Contract terms, she said, discouraged discounts and prevented other insurers from entering the market.
The lawsuit also asserts that blue Cross, in effect, bought protection from competition- by agreeing to pay higher prices to certain hospitals to induce them to agree to the "most favored nation" clauses.
Blue Cross Blue Shield of Michigan said the lawsuit had no merit. It said the contract clauses attacked by the Justice Department were a tool to secure the lowest possible hospital costs, and the deepest possible discounts, for more than four million people it served.
"It does not make good business sense for Blue Cross Blue Shield of Michigan to reimburse a provider at a higher rate than we can otherwise negotiate," said R. Andrew Hetzel, a spokesman for the company. "These kinds of low-cost guarentees are widely used in a variety of contracts in a number of industries."
Saturday, October 9, 2010
Izzy Rivera Secretary Treasurer Of Local 100 Removed By E-Board For Embezzlement Of Union Funds
An emergency meeting of the Local 100 Executive Board was held this evening to consider charges brought by President John Samuelsen against Secretary-Treasurer Israel Rivera, Jr. Since Samuelsen brought the charges against Rivera, and Rive...ra has filed charges against Samuelsen, Samuelsen stepped down as chair and appointed Steve Downs to chair the meeting.The charges are:1. "Misappropriation of the monies of the organization" by engaging "in a scheme causing the Union to enter into expensive leases with Xerox Corporation - without comparison shopping - for the purpose of funneling commissions to Lizette Baumgarten, a woman with whom he has a personal relationship".2. Engaging in Unauthorized Financial Transactions "causing the Union to pay $53,339 to purchase for his use an automobile with a market value of only $38,333."3. Refusing to process the Union's Payroll "thus jeopardizing the ability of the union to function."4. Refusal to Make Financial Report to Executive Board on Sept. 1, 2010.Because of the seriousness of the first two charges, the Board (invoking Article XXI of the TWU Constitution) voted to suspend Rivera immediately from his duties as Secretary-Treasurer, pending the outcome of a hearing by the Executive Board to be held within 15 days.The vote to suspend pending the hearing was 40 yes, 1 no, and 1 abstention. Rivera cast the no vote.The Board also voted that Rivera's suspension will be with pay. Samuelsen stated that he did not want to copy the MTA's practice of suspending people without pay while they wait for their hearings. The vote was 36 yes, 6 no, 1 abstention. Although will not be carrying out his duties as Secretary-Treasurer, he will be expected to report to the Union hall daily and will be given other assignments.Finally, the Board approved a motion made by VP Nelson Rivera to refer the information concerning charges 1 and 2 to the appropriate law enforcement agencies. The vote was 41 in favor, 1 opposed, and 0 abstentions. (I. Rivera supported this motion.)I want to emphasize that there has not yet been a hearing on the charges. I. Rivera has not had a chance to respond to the charges and the Board has not made decision about whether he is guilty or innocent of the violations he is charged with. Today's vote to suspend was based solely on the Board's assessment of the seriousness of the charges. A hearing must now be held within 15 days.The charges I. Rivera has brought against Samuelsen will be presented to the Board at a future Board meeting.
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