Waste Of The Day: NYC Healthcare Fund Is Out Of Cash

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Topline: Former New York City Comptroller Brad Lander claims one of the city’s health insurance funds has “no path to solvency” after labor unions used it to cover pay raises, Weight Watchers and more.

Key facts: New York’s taxpayer-funded Health Insurance Stabilization Fund owes $3.1 billion to outside vendors and the city that it’s unable to pay. The actual amount is likely much higher because expenses from 2024 and 2025 have not been totaled yet, according to Lander’s Dec. 30 audit.

The fund was created in 1985 to help employees afford the city’s Group Health Insurance (GHI) plan, a more costly alternative to the older Health Insurance Plan (HIP).

The fund has since been used for several other purposes, which Lander claims is illegal. The city’s labor unions, in their response to the audit, argued the fund can be used for “any mutually agreed upon purpose” reached through collective bargaining.

https://www.zerohedge.com/political/waste-day-nyc-healthcare-fund-out-cash