Mayor Bloomberg has discovered the secret for saving the city $363 million in health care costs — the threat of competition.
Bloomberg disclosed on his WOR Radio show today that Emblem Health, the city’s longtime insurer, has said that for the first time in 15 years it won’t increase premiums if it’s contract is renewed next year.
The mayor said that would stabilize the city’s annual health insurance tab at $6.4. billion and avert an increase of $363 million that had been anticipated in fiscal 2015, which begins on July 1.
Without changes, the city projected its health care bill would skyrocket to $8.3 billion in 2017.
Bloomberg said Emblem acted after his administration announced plans to test the market and seek new bids for coverage.
“It just shows how overpriced these services are,” said the mayor..
Emblem covers about 95 percent of the city’s employees, retirees and their families.
“We were convinced that city workers and retirees were not getting the best possible care at a competitive price,” said Deputy Mayor Cas Holloway.
“Emblem Health’s virtually unprecedented decision not to seek a rate increase for next year shows that we were right.”