State Legislature protects retirees' health insurance

At a time when retiree health insurance is under attack, both houses of the state Legislature have approved a union-backed bill to continue health insurance coverage protections for many public education retirees.

The legislation, which still needs the governor's signature to become law, extends until May 15, 2006, a moratorium that prohibits educational employers from diminishing health insurance benefits or contributions made on behalf of retirees and their dependents, unless there is a corresponding reduction in benefits for in-service employees (thus making any change subject to collective bargaining). Without this extension, the law would expire on May 15.



"Retiree health insurance is under attack like never before," said New York State United Teachers Executive Vice President Alan Lubin. "Without this extension, there'd be no legal requirement for educational employers to continue their longstanding commitment to providing health insurance coverage to retirees. There's no question many cash-strapped employers would abandon their commitment to save a few bucks."



In fact, NYSUT has recently won favorable court rulings upholding the moratorium law to protect health insurance benefits for retirees in Wappingers Falls in Dutchess County , Chenango Forks in Broome County , and Watertown in Jefferson County .



NYSUT has succeeded in securing the annual extension of the law since its original enactment in 1994.



For the long run, Lubin said the union seeks a permanent solution to the problem, as well as help for many retirees in Western New York whose districts have never shared retirees' health insurance costs.



"We continue to urge the Legislature and governor to enact legislation making these protections permanent," Lubin said. "We're also encouraging our elected officials to enact comparable legislation for all other retired public employees."



Lubin urged unionists to use NYSUT's Web site, www.nysut.org, to fax letters to the governor and legislators on the retiree health insurance issue.



The moratorium legislation comes at a time when several provisions in Bush's new Medicare law could encourage employers to drop health insurance coverage in the future.