GOVERNOR PATERSON ISSUES EXECUTIVE ORDER CREATING TASK FORCE ON PUBLIC RETIREE HEALTH BENEFITS

Task Force to Study Ways to Ensure Preservation of Quality Retiree Health Care; Address Financial Burdens on State and Local Governments

Appoints Richard A. Berman as Chairman of 15-Member Task Force

Governor David A. Paterson issued an Executive Order establishing the New York State Task Force on Public Retiree Health Benefits. The Task Force will study health care benefits provided to employees of the State and local governments in New York by specifically addressing the preservation of quality retiree health care, and ways to make health care more affordable for local governments.

Governor Paterson also announced the appointment of Richard A. Berman as Chairman of the Task Force. Mr. Berman has extensive experience in health policy and State government. He served in the administration of Governor Hugh Carey as director of the New York State Office of Health Systems Management and as Director of the Division of Housing and Community Renewal. Since then, he has been a management consultant with McKinsey and Company, the Executive Vice President at the New York University Medical Center, and Chair of the Westchester Medical Center. Mr. Berman presently serves as President of Manhattanville College, a position he has held since 1995.

“During these challenging economic times, we must continue to ensure that retirees receive quality health benefits, while also searching for innovative ways to control health care costs,” said Governor Paterson. “I would like to thank Richard Berman for accepting the role of studying the State’s public retiree health benefits system. Richard’s experience in both the public and private sectors will be a tremendous asset to the Task Force in looking at ways to reform the current system. I look forward to reviewing the recommendations and to working with stakeholders to addressing these difficult issues.”

The Task Force will gather information on benefits received by public retirees and will explore policy approaches to improving the current system of public retiree health benefits to advance goals such as maintaining quality and affordable health coverage for retirees, ensuring that retirees are treated equitably and fairly, limiting government health care costs, and maintaining sufficient flexibility for health care benefit management by the State and localities.

The Task Force will be comprised of representatives from New York State agencies including the Department of Civil Service, the Department of Health, the Office for the Aging, the Division of Budget and the Insurance Department, and the Governor will ask the New York State Comptroller, the Speaker of the Assembly and the Senate Majority Leader to make appointments as well. In addition to representatives from State government, the Task Force will include representatives from labor unions, retiree groups and local governments.

The creation of this Task Force fulfills a promise made by Governor Paterson following the veto of a bill in August 2008 that would have established a similar body through legislation. In his veto message, the Governor supported the need to examine this issue in greater detail, but expressed concern that the Task Force that would have been established through the legislation would not provide appropriate representation for interested parties.

The Task Force will submit recommendations to the Governor on or before June 1, 2009, or at a later date if selected by a majority of the Task Force.