Tuesday, December 30, 2025

MulgrewCare Update: We Owe $3.1 Billion - Explosive Audit Urges Dissolving Insolvent City Employee Health Fund

They (the City + MLC) lied to us and misused the Healthcare Stabilization Fund. This has ultimately affected our healthcare benefits and us paying more and more out of pocket.
Contact the NYS AG’s office, the DOL and Congress representatives.
Name the fish and win a free sub to Ed Notes

 
Demand further investigation, increased transparency, and increased oversight and regulation. These are our dues and tax dollars. Now they want a self-funded NYCEPPO plan? Why would anyone trust them to manage this properly?

This vindicates our reporting abt the bulk transfers of cash to @DC37nyc & @UFT’s welfare funds. Both now sit on a billion $ in assets — while members not seeing much more in benefits.

Also from the audit: The new self funded NYCEPPO plan is still not enough to pay for how much they are in the RED!
Why would anyone trust these 2 parties as constituted to manage this new self-funded plan properly?
Meanwhile @UFT and @DC37nyc sit on a billion dollars in their welfare funds from HSF?!
Read the audit here:

Daniel Alicea, EONYC and ABC

 

What next? $1000 dollar co-pays? 



They took a fund designed to keep member health costs down, made ridiculous deals with the city to fund raises with it, and watched it dwindle down to nothing. This has now been confirmed in an audit by city Comptroller Brad Lander. In 2014, MLC geniuses decided to fund raises by giving the city a billion dollars from the Stabilization Fund.

And more from  Daniel at Educators of NYC also posted

The Healthcare Fund They Quietly Decided to Kill

Leaked audio featuring MLC lawyer, Alan Klinger, leaves many asking: Did ‘Three Men in A Room’ collude to kill the NYC Healthcare Stabilization Fund?

For years, city workers and retirees have been told a familiar story:

Healthcare concessions were necessary, painful but unavoidable, and required to generate “cost savings” for the City. We were told these sacrifices were about sustainability. About protecting benefits. About avoiding worse outcomes.

We needed to save and replenish the depleted NYC Healthcare Stabilization Fund – or it would collapse, and we would have no choice but to pay healthcare premiums.

But buried in plain sight is an admission that turns that entire narrative on its head.

In a recent closed-door Municipal Labor Committee meeting, MLC and UFT attorney Alan Klinger acknowledged that a central goal of the City–Union Tripartite Health Committee was not to save the Healthcare Stabilization Fund (HSF)—but to eliminate it altogether.

Not through open debate. Not through a vote of the MLC body. But through a quiet, structural decision made by a tiny group of three individuals operating far from rank-and-file eyes and ears.



 

 And THE CITY SCOOP.


Dear New Yorkers,

An explosive audit from City Comptroller Brad Lander released today urges dissolving a fund that helps finance city employees health benefits, concluding that it is billions of dollars in the red after being tapped for years by municipal unions and mayors in labor bargaining.

Declaring the Health Insurance Stabilization Fund "insolvent," Lander’s auditors determined that the Health Insurance Stabilization Fund owes the city $3.1 billion, not counting obligations to vendors that have yet to be tallied for fiscal years 2024 and 2025.

The probe paints a picture of the city and municipal unions using the fund as a virtual piggy bank, authorizing $4.3 billion in payments from 2001 to 2024. Meanwhile a 2014 labor deal reduced the city’s obligations to pay into the health fund — ultimately shrinking the fund’s balance by $3.3 billion. 

And it reveals that the city unions scrambled to set up Medicare Advantage as a cost-savings health plan for retirees as part of a gameplan to replenish the rapidly depleting 

The audit’s existence spilled into public view when THE CITY obtained audio of an internal union meeting — and prompted the municipal unions in an internal memo to decry what they called a "false and biased" probe from the comptroller.

Read more here about the billions of dollars in the balance.

 

No comments: