State, insurance firms settle
New York State Attorney General Eric Schneiderman announced Jan. 19 that the state had reached a settlement with eight major health insurance companies that had been providing consumers with incorrect provider directories.
The settlements require the eight companies to ensure the accuracy of posted directories, to remove providers who no longer participate with the plans, and to implement new business practices for updating their online provider directories in a timely manner going forward.
“Consumers are entitled to accurate information from their health care insurers, especially for something as basic as whether or not their doctor is in their network,” Schneiderman said in a statement.
The eight companies include Empire HealthChoice HMO Inc., Empire HealthChoice Assurance Inc., Health Insurance Plan of Greater New York, HIP Insurance Company of New York, United HealthCare of New York Inc., Oxford Health Plans of New York, United HealthCare Insurance Company of New York and Vytra Health Plans.
As part of the settlement, the companies must also pay restitution to consumers who paid more than they should have been required to as a result of incorrect listings.
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Mandate relief panel meets
The Mandate Relief Council, appointed by Gov. Andrew Cuomo and the state Legislature, held its first meeting Jan. 25 in Albany.
The council was created to address the rising cost of unfunded mandates facing local government entities, which have in turn resulted in Westchester County having among the highest property taxes in the nation.
Last week”™s public meeting was the first of several that will be conducted across the state.
The meeting also comes a month after the governor”™s Mandate Relief Redesign Team, a separate committee made up of elected officials and business advocates, submitted its final report highlighting $245 million in potential mandate relief as well as other areas that could be targeted for reforms.
The council is made up of 11 elected and appointed state officials and chaired by Secretary to the Governor Lawrence Schwartz.
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Wage hike support grows
New York City Mayor Michael Bloomberg last week called on lawmakers in Albany to raise the state”™s minimum wage in his State of the City address, joining Assembly Speaker Sheldon Silver in advocating for higher wages.
However, Gov. Andrew Cuomo has said in interviews that he will defer on the issue to the Legislature when it convenes, and last week one of the state”™s foremost business advocates criticized Bloomberg for his stance.
Mike Durant, director of the New York chapter of the National Federation of Independent Business, said raising the minimum wage would lead to job cuts and would do more harm than good.
“All of the serious research shows that higher minimum wage laws destroy jobs for the youngest and poorest workers,” Durant said in a statement.
He said that raising the minimum wage would result in the crowding out of less-experienced workers from the job market.
“Small employers that can”™t afford the increase will simply find ways to avoid creating new jobs. And the jobs that are available will be more attractive to people who have more experience. People with the lowest skills and the least experience will be crowded out of the market.”
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Gillibrand flips on PIPA
Sen. Kirsten Gillibrand was criticized by Republicans last week after flip-flopping on the Protect IP Act, which she had previously co-sponsored.
The reversal came after an online protest of PIPA and the Stop Online Piracy Act by the likes of Google, Facebook, and Wikipedia sparked public outcry last week.
Gillibrand explained her decision to withdraw her support from PIPA in a statement posted to Facebook.
“I agree there are real concerns with the current legislation and I”™m working to make important changes to the bill. We must work to strike a balance between ending online piracy to protect New York jobs and ensuring Internet freedom.”
Ed Cox, chairman of the New York Republican State Committee, said Gillibrand”™s support of “misguided bills like this one” is one of the reasons for New York”™s poor business rankings.
