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Bloomberg Criticizes Insurance Merger

New York's insurance regulators got an earful from opponents of the planned merger between GHI and HIP yesterday.

by Amy Eddings

NEW YORK, NY January 30, 2008 —REPORTER: The non-profit insurance giants cover the city's workforce.

An insurance company spokesman says most of the criticism was from people worried about a monopoly and rising premiums - concerns that Mayor Bloomberg shares.

BLOOMBERG: New York City would, if this merger goes through, have a lot less options in terms of negotiating better services at lower prices for our municipal workers and the taxpayer will pay and the municipal workers would suffer.

REPORTER: GHI and HIP say that by becoming bigger, the companies can keep fees low.

Governor Spitzer's proposed budget includes some of the $1.8 billion in revenue the state would receive from the merged, for-profit company.

Bloomberg says most of that windfall should go to the city.



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