New York City’s government workers are freeloading on the taxpayers to the tune of nearly $1 billion a year by contributing little or nothing toward their health-insurance coverage, according to a bombshell study released yesterday.
The city’s health-care giveaway — amid the worst economic downturn in half a century — is out of whack with even New York state government policy, according to the Rockefeller Institute of Government analysis.
State government workers and retirees must pay 10 percent of the cost of individual premiums and 25 percent of premiums for family health coverage.
If city workers were required to pay what state workers do, Big Apple taxpayers would realize $923 million in savings annually, the report said.
And other local governments around the state, combined, would save $838 million a year, if their workers shared in the cost of their health insurance.
Meanwhile, the researchers said cash-strapped Albany, which must close a projected $9 billion deficit next year, can no longer afford to subsidize escalating public-employee health costs.
“It’s hard to justify the disparity,” said Rockefeller fellow Carol O’Cleireacain, a former city budget director and labor union economist.
Lt. Gov. Richard Ravitch, who requested the study, said: “Continuing business as usual is not sustainable.”
The study recommends approval of a state law requiring that all local government workers — teachers, firefighters and police — contribute the same amount that state workers pay toward their health premiums.
Labor leader Harry Nespoli shot back: “This is nothing but a ploy to set back the unions.”
Nespoli, chairman of the city Municipal Labor Council and head of the sanitation workers union, said many city workers are scraping to get by. “They want us to pay more. It’s a difficult thing to do. When taxes go up, we get taxed,” he said.
Gov.-Elect Andrew Cuomo, in a campaign policy statement, backed the concept of requiring government workers to kick in more dough for their health coverage.
Mayor Bloomberg praised the study.
“We cannot afford increasing health-care costs, and we need cooperation to reduce those costs through some minimum employee contribution for all employees,” said mayoral spokesman Marc LaVorgna.
Bloomberg has been unsuccessful in getting the unions to agree to mandatory payroll contributions from the workforce. The unions and City Hall did reach a deal on some cost-saving measures last year that require workers and retirees to make some co-pays for medical and hospital visits.
The accord saves the city $200 million a year in health costs.
Meanwhile, city and union officials countered that the Big Apple’s health-care program for its employees is less expensive than the state’s health-insurance plan for its workers.
Still, labor leaders said given New York’s dire financial circumstances, they may have to come to the table to discuss health concessions.
“It’s a sign of the times,” Nespoli said.