Tuesday, October 5, 2021

The Budget and the Medicare Advantage Scam

The following are the amounts budgeted by the city for health insursance and welfare benefits in FY-2021 and FY-2022:

NYC Health Insurance and Welfare Fund Budget 2021-2022
Description FY-2021 FY-2022 Inr/Dcr
Employee Health Insurance $4.822B $5.188B $366.8M
Retiree Health Insuranve $2.773B $2.142B ($630.9M)
Employee Welfare Funds $899.8M $1,161.5M $261.8M
Retiree Welfare Funds $351.6M $491.9M $140.3M

It is clear from the chart above that via the Medicare Advantage scam the City was able to take $630M from the retirees health insurance benefits and increase payment to workers health insurance payments ($366M), and most importantly to funnel more into the union welfare funds, ($391M).

UFT and DC-37 and the Welfare funds

As stated in the latest audit (October, 2020) from the Comptroller, the City gave over $368.0M to the UFT welfare fund and $288.1M to the DC-37 welfare fund in 2018. Click on the Comptroller's audit from the Comptroller. The total amount paid to all welfare funds for 2018 was $1.37B to 107 city unions of which over $113.5M was spent on administration.

The NYCERS Actuary's FY-2021 OPEB Report provides extensive information on non-pension benefits paid to retirees. In particular, see page 140.

Federal Subsidy for 2022

Note: As part of the ARP Act of 2021, the federal government gave the city $1.024B towards employees health insurance costs (ARP Act - 2021)

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